Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2024 | May 15, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2024 | |
Entity File Number | 0-28720 | |
Entity Registrant Name | PAID, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 73-1479833 | |
Entity Address, Address Line One | 225 Cedar Hill Street | |
Entity Address, City or Town | Marlborough | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 01752 | |
City Area Code | 617 | |
Local Phone Number | 861-6050 | |
Title of 12(g) Security | Common Stock, $0.001 Par Value | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 8,061,400 | |
Entity Central Index Key | 0001017655 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 1,272,409 | $ 2,052,421 |
Accounts receivable, net | 290,948 | 205,647 |
Note receivable, net of discount | 3,346,414 | 2,453,425 |
Prepaid expenses and other current assets | 117,180 | 134,110 |
Total current assets | 5,026,951 | 4,845,603 |
Property and equipment, net | 13,551 | 10,678 |
Intangible assets, net | 2,298,865 | 2,422,590 |
Operating lease right-of-use assets, net | 8,766 | 14,161 |
Total assets | 7,348,133 | 7,293,032 |
Current liabilities: | ||
Accounts payable | 1,301,945 | 1,482,498 |
Accrued expenses | 392,998 | 420,611 |
Contract liabilities | 13,420 | 15,382 |
Operating lease obligations | 8,767 | 14,162 |
Total current liabilities | 1,717,130 | 1,932,653 |
Long-term liabilities: | ||
Deferred tax liability, net | 604,067 | 622,568 |
Uncertain tax position liability | 278,704 | 278,704 |
Total liabilities | 2,599,901 | 2,833,925 |
Commitments and Contingencies | ||
Shareholders' equity: | ||
Common stock, $0.001 par value, 25,000,000 shares authorized; 8,209,033 shares issued and 8,061,400 shares outstanding at March 31, 2024 and 8,154,474 shares issued and 8,010,837 shares outstanding at December 31, 2023 | 8,209 | 8,154 |
Accrued common stock bonus | 0 | 84,576 |
Additional paid-in capital | 73,628,944 | 73,505,439 |
Accumulated other comprehensive income | 297,543 | 342,968 |
Accumulated deficit | (69,017,628) | (69,317,190) |
Common stock in treasury, at cost, 147,633 shares at March 31, 2024 and 143,637 shares at December 31, 2023 | (168,836) | (164,840) |
Total shareholders' equity | 4,748,232 | 4,459,107 |
Total liabilities and shareholders' equity | 7,348,133 | 7,293,032 |
Series A Preferred Stock [Member] | ||
Shareholders' equity: | ||
Series A Preferred stock, $0.001 par value, 5,000,000 shares authorized; no shares issued and outstanding | $ 0 | $ 0 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares | Mar. 31, 2024 | Dec. 31, 2023 |
Preferred stock, par value (in dollars per share) | $ 0.001 | |
Preferred stock, shares authorized (in shares) | 20,000,000 | |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
Common stock, shares issued (in shares) | 8,209,033 | 8,154,474 |
Common stock, shares outstanding (in shares) | 8,061,400 | 8,010,837 |
Treasury Stock (in shares) | 147,633 | 143,637 |
Series A Preferred Stock [Member] | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred Stock, Shares Issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenues, net | $ 4,160,750 | $ 3,806,275 |
Cost of revenues | 3,142,392 | 2,953,681 |
Gross profit | 1,018,358 | 852,594 |
Operating expenses: | ||
Salaries and related | 571,455 | 495,501 |
General and administrative | 371,461 | 310,017 |
Share-based compensation | 38,984 | 392,538 |
Amortization of other intangible assets | 74,285 | 74,066 |
Total operating expenses | 1,056,185 | 1,272,122 |
Loss from operations | (37,827) | (419,528) |
Other income (expense): | ||
Interest income | 141,780 | 0 |
Other income | 201,209 | 125,000 |
Total other income | 342,989 | 125,000 |
Income (loss) before income tax provision | 305,162 | (294,528) |
Income tax provision | 5,600 | 400 |
Net income (loss) | $ 299,562 | $ (294,928) |
Net income (loss) per share – basic (in dollars per share) | $ 0.04 | $ (0.04) |
Weighted average number of common shares outstanding – basic (in shares) | 8,032,421 | 7,722,536 |
Net income (loss per share – diluted (in dollars per share) | $ 0.04 | $ (0.04) |
Weighted average number of common shares outstanding – diluted (in shares) | 8,038,117 | 7,722,536 |
Condensed consolidated statements of comprehensive income (loss): | ||
Net income (loss) | $ 299,562 | $ (294,928) |
Weighted average number of common shares outstanding – diluted (in shares) | 8,038,117 | 7,722,536 |
Foreign currency translation adjustments | $ (45,425) | $ (2,296) |
Comprehensive income (loss) | $ 254,137 | $ (297,224) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 299,562 | $ (294,928) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 77,809 | 77,526 |
Amortization of operating lease right-of-use assets | 5,125 | 8,988 |
Accretion of discount on note receivable | (201,209) | (125,000) |
Share-based compensation | 38,984 | 392,538 |
Interest income accrued on note receivable | (141,780) | 0 |
Changes in assets and liabilities: | ||
Accounts receivable | (89,714) | (27,971) |
Prepaid expenses and other current assets | 14,959 | 58,784 |
Accounts payable | (202,351) | (10,001) |
Accrued expenses | (20,056) | (84,488) |
Contract liabilities | (1,653) | (1,251) |
Operating lease obligations | (5,125) | (9,268) |
Net cash used in operating activities | (225,449) | (15,071) |
Cash flows from investing activities | ||
Purchase of property and equipment | (6,629) | |
Issuance of note receivable | (500,000) | |
Net cash used in investing activities | (506,629) | |
Cash flows from financing activities | ||
Repurchase of common stock | (3,996) | 0 |
Net cash used in financing activities | (3,996) | 0 |
Effect of exchange rate changes on cash and cash equivalents | (43,938) | (2,369) |
Net change in cash and cash equivalents | (780,012) | (17,440) |
Cash and cash equivalents, beginning of period | 2,052,421 | 1,787,248 |
Cash and cash equivalents, end of period | 1,272,409 | 1,769,808 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||
Income taxes | 5,600 | 400 |
Interest | 0 | 0 |
SUPPLEMENTAL DISCLOSURES OF NON-CASH ITEMS | ||
Increase in not receivable for reimbursable expenses | 50,000 | 0 |
Issuance of common shares in settlement of accrued common stock bonus | $ 84,576 | $ 82,180 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - USD ($) | Common Stock [Member] | Deferred Compensation, Share-Based Payments [Member] | Additional Paid-in Capital [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Treasury Stock, Common [Member] | Total |
Balance (in shares) at Dec. 31, 2022 | 7,840,124 | (143,637) | |||||
Balance at Dec. 31, 2022 | $ 7,840 | $ 82,180 | $ 72,800,976 | $ 316,360 | $ (69,670,404) | $ (164,840) | $ 3,372,112 |
Foreign currency translation adjustments | $ 0 | 0 | 0 | (2,296) | 0 | $ 0 | (2,296) |
Issuance of common stock in settlement of accrued common stock bonus (in shares) | 46,961 | 0 | |||||
Issuance of common stock in settlement of accrued common stock bonus | $ 47 | (82,180) | 82,133 | 0 | 0 | $ 0 | 0 |
Issuance of common stock for signing bonus (in shares) | 250,000 | 0 | |||||
Issuance of common stock for signing bonus | $ 250 | 0 | 273,188 | 0 | 0 | $ 0 | 273,438 |
Share-based compensation expense | 0 | 0 | 119,100 | 0 | 0 | 0 | 119,100 |
Net income (loss) | 0 | 0 | 0 | 0 | (294,928) | 0 | (294,928) |
Share-based compensation expense | 0 | 0 | 119,100 | 0 | 0 | 0 | 119,100 |
Net loss | $ 0 | 0 | 0 | 0 | (294,928) | $ 0 | (294,928) |
Balance (in shares) at Mar. 31, 2023 | 8,137,085 | (143,637) | |||||
Balance at Mar. 31, 2023 | $ 8,137 | 0 | 73,275,397 | 314,064 | (69,965,332) | $ (164,840) | 3,467,426 |
Balance (in shares) at Dec. 31, 2023 | 8,154,474 | (143,637) | |||||
Balance at Dec. 31, 2023 | $ 8,154 | 84,576 | 73,505,439 | 342,968 | (69,317,190) | $ (164,840) | 4,459,107 |
Foreign currency translation adjustments | $ 0 | 0 | 0 | (45,425) | 0 | $ 0 | (45,425) |
Issuance of common stock in settlement of accrued common stock bonus (in shares) | 54,559 | 0 | |||||
Issuance of common stock in settlement of accrued common stock bonus | $ 55 | (84,576) | 84,521 | 0 | 0 | $ 0 | 0 |
Share-based compensation expense | 0 | 0 | 38,984 | 0 | 0 | 0 | 38,984 |
Net income (loss) | $ 0 | 0 | 0 | 0 | 299,562 | $ 0 | 299,562 |
Purchase of treasury stock (in shares) | 0 | (3,996) | |||||
Purchase of treasury stock | $ 0 | 0 | 0 | 0 | 0 | $ (3,996) | (3,996) |
Share-based compensation expense | 0 | 0 | 38,984 | 0 | 0 | 0 | 38,984 |
Net loss | $ 0 | 0 | 0 | 0 | 299,562 | $ 0 | 299,562 |
Balance (in shares) at Mar. 31, 2024 | 8,209,033 | (147,633) | |||||
Balance at Mar. 31, 2024 | $ 8,209 | $ 0 | $ 73,628,944 | $ 297,543 | $ (69,017,628) | $ (168,836) | $ 4,748,232 |
Note 1 - Organization and Signi
Note 1 - Organization and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2024 | |
Notes to Financial Statements | |
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block] | Note 1. Organization and Significant Accounting Policies PAID, Inc. (“PAID”, the “Company”, “we”, “us”, or “our”) has developed a full line of SaaS-based business services including PaidPayments, PaidCart, PaidShipping and PaidWeb. These solutions are developed to provide businesses with a streamlined experience for website creation, online sales, payment collection and shipping all in one platform. ShipTime Canada Inc. (“ShipTime”) has developed a SaaS-based application, which focuses on the small and medium business segments. This offering allows members to quote, process, generate labels, dispatch and track courier and LTL shipments all from a single interface. The application provides customers with a choice of today’s leading couriers and freight carriers all with discounted pricing allowing members to save on every shipment. ShipTime can also be integrated into on-line shopping carts to facilitate sales via e-commerce. We actively sell directly to small and medium businesses and through long standing partnerships with selected associations throughout Canada. Paid offers a robust platform enabling small and medium businesses to launch websites via our catalog of templates. Our platform includes a wide array of features such as mobile editing, search engine optimization, collaboration tools, pre-designed templates, and can be integrated with multiple platforms. PaidCart serves as a comprehensive solution for small and medium businesses looking to expand their online sales through multiple channels. It provides a centralized system to manage sales across various platforms, with additional functionalities for currency and language management, promotional sales, and abandoned cart recovery. PaidPayments and PaidShipping seamlessly interface with PaidCart to facilitate the checkout and shipping processes. Operating as a Payment Facilitator since 2019, PaidPayments provides businesses with a secure and efficient way to conduct online transactions including a virtual terminal, invoicing capability, subscriptions processing, checkout pages, and a point-of-sale system with support for USD, CAD, and EUR currencies. PaidShipping delivers a solution to quote, process, generate labels, dispatch and track courier and LTL shipments all from a single interface. We offer savings through partnerships with leading carriers. It includes a multi-courier comparison tool, integrations with eCommerce platforms and branded tracking. General Presentation and Basis of Condensed Consolidated Financial Statements The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), and with the rules and regulations of the Securities and Exchange Commission ("SEC") regarding interim financial reporting. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the Company's audited consolidated financial statements and notes thereto included in the Annual Report on Form 10-K for the year ended December 31, 2023 that was filed on April 1, 2024. In the opinion of management, the Company has prepared the accompanying unaudited condensed consolidated financial statements on the same basis as its audited consolidated financial statements, and these unaudited condensed consolidated financial statements include all adjustments, consisting of normal recurring adjustments necessary for a fair presentation of the results of the interim periods presented. The operating results for the interim periods presented are not necessarily indicative of the results expected for the full year 2024. Liquidity and Management s Plans At March 31, 2024, the Company reported cash and cash equivalents of $1,272,409 and net working capital of $3,309,821 and reported cash flows used in operations of $225,449 for the three months ended March 31, 2024. The Company has reported a net income of $299,562 for the three months ended March 31, 2024 and has an accumulated deficit of $69,017,628 at March 31, 2024. Management believes that the Company has adequate cash resources to fund operations during the next 12 months after the filing of this quarterly report on Form 10-Q. In addition, management continues to explore opportunities and has organized additional resources to monetize its patents. However, there can be no assurance that anticipated growth in new business will occur, and that the Company will be successful in launching new products and services. Management continues to seek alternative sources of capital to support the growth of future operations. Although there can be no assurances, the Company believes that the above management plans will be sufficient to meet the Company’s working capital requirements through the end of May 2025 and will have a positive impact on the Company for the foreseeable future. Principles of Consolidation The condensed consolidated financial statements include the accounts of PAID, Inc. and its wholly owned subsidiaries, PAID Run, LLC and ShipTime Canada, Inc. All intercompany accounts and transactions have been eliminated. Foreign Currency The currency of ShipTime, the Company’s international subsidiary, is in Canadian dollars. Foreign currency denominated assets and liabilities are translated into U.S. dollars using the exchange rates in effect at March 31, 2024 and December 31, 2023. Results of operations and cash flows are translated using the average exchange rates throughout the period. The effect of exchange rate fluctuations on translation of assets and liabilities is included as a separate component of shareholders’ equity in accumulated other comprehensive income. Geographic Concentrations The Company conducts business in the U.S. and Canada. For customers headquartered in their respective countries, the Company derived approximately 99% of its revenues from Canada and 1% from the U.S. during the three months ended March 31, 2024 and 2023. At March 31, 2024, the Company maintained 100% of its property and equipment, net of accumulated depreciation, in Canada. Right of Use Assets A right-of-use asset represents a lessee’s right to use a leased asset for the term of the lease. Our right-of-use assets generally consist of an operating lease for a building. Right-of-use assets are measured initially at the present value of the lease payments, plus any lease payments made before a lease began and any initial direct costs, such as commissions paid to obtain a lease. Right-of-use assets are subsequently measured at the present value of the remaining lease payments, adjusted for incentives, prepaid or accrued rent, and any initial direct costs not yet expensed. Long-Lived Assets The Company reviews the carrying values of its long-lived assets for possible impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the expected future cash flow from the use of the asset and its eventual disposition is less than the carrying amount of the asset, an impairment loss is recognized and measured using the fair value of the related asset. No Revenue Recognition The Company generates revenue principally from fees for coordinating shipping services, sales of shipping calculator subscriptions, brewery management software subscriptions, merchant processing services and client services. The Company recognizes revenue by taking into consideration the following five steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as) the entity satisfies a performance obligation. Due to the nature of the Company’s product offerings and contracts associated with those products, the Company’s deliverables do not fluctuate, and its revenue recognition is consistent. Nature of Goods and Services For label generation service revenues, the Company recognizes revenue when a customer has successfully prepared a shipping label and scheduled a pickup. Customers with pickups after the end of the reporting period are recorded as contract liabilities on the condensed consolidated balance sheets. The service is offered to consumers via an online registration and allows users to create a shipping label using a credit card on their account (all customers must have a valid credit card on file to process shipments on the ShipTime platform). For shipping calculator revenues and brewery management software revenues, the Company recognizes subscription revenue on a monthly basis. Shipping calculator customers’ renewal dates are based on their date of installation and registration of the shipping calculator line of products. The timing of the revenue recognition and cash collection may vary within a given quarter and the deposits for future services are recorded as contract liabilities on the condensed consolidated balance sheets. Brewery management software subscribers are billed monthly at the first of the month. All payments are made via credit card for the following month. Merchant processing revenue consists of fees a seller pays us to process their payment transactions and is recognized upon authorization of a transaction. Revenue is recognized net of estimated refunds, which are reversals of transactions initiated by sellers. We act as the merchant of record for our sellers, which puts us in their shoes with respect to card networks and puts the risk for refunds and chargebacks on us. The gross transaction fees collected from sellers is recognized as revenue as we are the primary obligor to the seller and are responsible for processing the payment, have latitude in establishing pricing with respect to the sellers and other terms of service, have sole discretion in selecting the third party to perform the settlement, and assume the credit risk for the transaction processed. Revenue Disaggregation The Company operates in four Performance Obligations At contract inception, an assessment of the goods and services promised in the contracts with customers is performed and a performance obligation is identified for each distinct promise to transfer to the customer a good or service (or bundle of goods or services). To identify the performance obligations, the Company considers all of the goods or services promised in the contract regardless of whether they are explicitly stated or are implied by customary business practices. Revenue is recognized when the performance obligation has been met, which is when the customer has successfully prepared a shipping label and had a pickup for shipping coordination and label generation services. The Company considers control to have transferred at that time because the Company has a present right to payment at that time, the Company has provided the shipping label, and the customer is able to direct the use of, and obtain substantially all of the remaining benefits from, the shipping label. For arrangements under which the Company provides a subscription for shipping calculator services and brewery management software, the Company satisfies its performance obligations over the life of the subscription, typically twelve months or less. Merchant processing customers receive a merchant identification number which allows them to process credit card transactions. Once the transaction is approved, the funds are distributed in an overnight feed and the Company has met its performance obligation. The Company has no shipping and handling activities related to contracts with customers. Revenues are recognized net of any taxes collected from customers, which are subsequently remitted to government authorities. Significant Payment Terms Pursuant to the Company’s contracts with its customers, amounts are collected up front primarily through credit/debit card transactions. The Company has offered its customers consolidated payments which are billed weekly and are paid with a credit card on file. Accordingly, the Company determined that its contracts with customers do not include extended payment terms or a significant financing component. Measurement of Credit Losses The Company has accounts receivable and note receivable and monitors the granting of credit and collecting debt on an ongoing basis. The Company maintains an allowance for doubtful accounts based on historical loss patterns, the number of days that billings are past due, and an evaluation of potential risk of loss associated with delinquent accounts. The Company has one note receivable and is a senior secure lender with an absolute obligation. The note is evaluated for credit losses by considering the contractual obligation, the valuation of the assets and the senior position of the repayment. Variable Consideration In some cases, the nature of the Company’s contracts may give rise to variable consideration, including rebates and cancellations or other similar items that generally decrease the transaction price. Variable consideration is estimated at the most likely amount that is expected to be earned. Estimated amounts are included in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. Estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of the anticipated performance and all information (historical, current and forecasted) that is reasonably available. Revenues are recorded net of variable consideration, such as rebates, refunds, and cancellations. Warranties The Company’s products and services are provided on an “as is” basis and no warranties are included in the contracts with customers. Also, the Company does not offer separately priced extended warranty or product maintenance contracts. Contract Assets Typically, the Company has already collected revenue from the customer at the time it has satisfied its performance obligation. Accordingly, the Company has only a small balance of accounts receivable, totaling $290,948 and $205,647 as of March 31, 2024 and December 31, 2023, respectively. The Company has no one Contract Liabilities (Deferred Revenue) Contract liabilities are recorded when cash payments are received in advance of the Company’s performance (including rebates). Contract liabilities were $13,420 and $15,382 at March 31, 2024 and December 31, 2023, respectively. During the three months ended March 31, 2024, the Company recognized revenues of $15,382 related to contract liabilities outstanding at the beginning of the period. Income (Loss) Per Common Share Basic earnings (loss) per share represent income (loss) divided by the weighted-average number of common shares outstanding during the period. Diluted income (loss) per share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income (loss) that would result from the assumed issuance. The potential common shares that may be issued by the Company relate to outstanding stock options and have been excluded from the computation of diluted income (loss) per share if they would reduce the reported loss per share and therefore have an anti-dilutive effect. For the three months ended March 31, 2023, there were approximately 7,500 of potentially dilutive shares excluded from the diluted loss per share calculation, as their effect would be anti-dilutive. The following is a reconciliation of the numerators and denominators of the basic and diluted income (loss) per common share computations for the three months ended March 31, 2024 and 2023. Three Months Ended March 31, 2024 Three Months Ended March 31, 2023 Numerator: Net income (loss) $ 299,562 $ (294,928 ) Denominator: Basic weighted-average shares outstanding 8,032,421 7,722,536 Basic income (loss) per share $ 0.04 $ (0.04 ) Effect of dilutive securities 5,696 - Diluted weighted-average shares outstanding 8,038,117 7,722,536 Diluted income (loss) per share $ 0.04 $ (0.04 ) Segment Reporting The Company reports information about segments of its business in its annual consolidated financial statements and reports selected segment information in its quarterly reports issued to shareholders. The Company also reports on its entity-wide disclosures about the products and services it provides and reports revenues and its major customers. The Company’s four four a. Client services; b. Merchant processing services; c. Shipping coordination and label generation services; and d. Corporate operations The Company evaluates performance and allocates resources based upon operating income. The accounting policies of the reportable segments are the same as those described in this summary of significant accounting policies. The Company’s chief operating decision maker is the Chief Executive Officer/Chief Financial Officer. The following table compares total net revenue for the periods indicated. Three Months Ended March 31, 2024 March 31, 2023 Client services $ 7,260 $ 8,665 Merchant processing services 13,645 24,843 Shipping coordination and label generation services 4,139,845 3,772,767 Total net revenues $ 4,160,750 $ 3,806,275 The following table compares total loss from operations for the periods indicated. Three Months Ended March 31, 2024 March 31, 2023 Client services $ 3,455 $ 2,118 Merchant processing services (22,562 ) 5,759 Shipping coordination and label generation services 52,664 (297,757 ) Corporate operations (71,384 ) (129,648 ) Total loss from operations $ (37,827 ) $ (419,528 ) Subsequent Events The Company has evaluated subsequent events through the filing date of this Form 10-Q and has determined that no subsequent events have occurred that would require recognition in the condensed consolidated financial statements of disclosure in the notes thereto, other than disclosed herein. Reclassification Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations. An adjustment has been made to the segment reporting for the period ended March 31, 2023, to consolidate revenue reporting for smaller segments of the Company. Recent Accounting Pronouncements In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2023-09, Improvements to Income Tax Disclosures (“ASU 2023-09”), which requires more detailed income tax disclosures. The guidance requires entities to disclose disaggregated information about their effective tax rate reconciliation as well as expanded information on income taxes paid by jurisdiction. The disclosure requirements will be applied on a prospective basis, with the option to apply them retrospectively. The standard is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. We are currently evaluating the disclosure requirements related to the new standard . In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures which provides guidance to improve the disclosures about a public entity’s reportable segments and address requests from investors for additional, more detailed information about reportable segment’s expenses. The new guidance must be adopted for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted, and retrospective application is required for all periods presented. We are currently evaluating the impact of this standard on our consolidated financial statements and related disclosures. |
Note 2 - Note Receivable
Note 2 - Note Receivable | 3 Months Ended |
Mar. 31, 2024 | |
Notes to Financial Statements | |
Financing Receivables [Text Block] | Note 2. Note Receivable On October 13, 2022, the Company entered in a Securities Purchase Agreement (“SPA”) with respect to a secured $1,875,000 convertible note (“Convertible Note”) made by Embolx, Inc. (“Noteholder”), a California corporation. The Convertible Note was purchased at a 20% ($375,000) original issue discount and is subject to a 9-month maturity, after which, if unpaid will then carry a 20% interest rate. The Company recognized $270,833 in other income related to accretion of the discount on the Convertible Note for the year ended December 31, 2023 in addition to a $375,000, 20% non-payment penalty and interest due on the note of $203,425. The Company has the option to convert the Convertible Note into shares of common stock of the Noteholder. The Convertible Note is secured by substantially all assets of the Noteholder. Under the SPA, the Company has a right to purchase additional notes and receive warrants on the same terms for a total potential investment amount of $2,000,000 with an additional over-allotment option of $500,000 as defined in the SPA. As additional consideration, the Company received a 5-year warrant to purchase shares of common stock of the Noteholder. The shares are subject to certain piggyback registration rights under a Registration Rights Agreement. The warrant is offered at 50% of the original principal amount and will be valued at the price per share of common stock paid in the first liquidity event following October 19, 2022. The warrants expire five The Company does not believe there is any impairment to the note receivable due to its secured position on the assets of Embolx and its expectation that the amounts will be recoverable if and when Embolx consummates a financial or merger transaction which is expected to happen in 2024. |
Note 3 - Accrued Expenses
Note 3 - Accrued Expenses | 3 Months Ended |
Mar. 31, 2024 | |
Notes to Financial Statements | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | Note 3. Accrued Expenses Accrued expenses are comprised of the following: March 31, 2024 (unaudited) December 31, 2023 Payroll and related costs $ 138,404 $ 238,161 Royalties 40,075 40,075 Accrued cost of revenues 191,881 119,737 Sales tax 22,228 22,228 Other 410 410 Total $ 392,998 $ 420,611 |
Note 4 - Intangible Assets
Note 4 - Intangible Assets | 3 Months Ended |
Mar. 31, 2024 | |
Notes to Financial Statements | |
Intangible Assets Disclosure [Text Block] | Note 4. Intangible Assets The Company holds several patents for the real-time calculation of shipping costs for items purchased through online auctions using a zip code as a destination location indicator. It includes shipping charge calculations across multiple carriers and accounts for additional characteristics of the item being shipped, such as weight, special packaging or handling, and insurance costs. These patents help facilitate rapid and accurate estimation of shipping costs across multiple shipping carriers and also include real-time calculation of shipping. In addition, the Company has various other intangibles from past business combinations. At March 31, 2024, intangible assets consisted of the following: Patents Trade Name Technology & Software Customer Relationships Total Gross carrying amount $ 16,000 $ 790,844 $ 588,818 $ 4,653,195 $ 6,048,857 Accumulated amortization (16,000 ) (790,844 ) (588,818 ) (2,354,330 ) (3,749,982 ) $ - $ - $ - $ 2,298,865 $ 2,298,865 At December 31, 2023, intangible assets consisted of the following: Patents Trade Name Technology & Software Customer Relationships Total Gross carrying amount $ 16,000 $ 807,420 $ 599,404 $ 4,746,242 $ 6,169,066 Accumulated amortization (16,000 ) (807,420 ) (599,404 ) (2,323,652 ) (3,746,476 ) $ - $ - $ - $ 2,422,590 $ 2,422,590 Amortization expense of intangible assets for the three months ended March 31, 2024 and 2023 was $74,285 and $74,066, respectively. |
Note 5 - Commitments and Contin
Note 5 - Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | Note 5. Commitments and Contingencies Legal Matters In the normal course of business, the Company periodically becomes involved in litigation and disputes. During 2021, the Company was notified of a dispute related to its non-renewal of the employment agreement with Mr. Allan Pratt, the Company’s former President, CEO and Chairman. On or around January 2020, the Company had allowed Mr. Pratt’s employment agreement to not renew, but Mr. Pratt alleges in a court in Canada that the Company terminated him and that the Company owes him a severance payment. Around the same time that Mr. Pratt’s employment term expired, the Company’s Board of Directors voted to reduce the size of the Board from five to three members, and Mr. Pratt and Mr. Austin Lewis, then CFO, automatically rolled off from the Board of Directors. More than a year later, in 2021, Mr. Pratt filed a claim in Delaware courts to contest that decision and this claim was dismissed on November 9, 2023. In July 2022, Mr. Pratt amended the complaint to dispute the proper authorization of a stock bonus that was awarded to the Company’s CEO in March 2021. The Company has not recorded a reserve as the outcome of these matters cannot be determined. Indemnities and Guarantees The Company has made certain indemnities and guarantees, under which it may be required to make payments to a guaranteed or indemnified party, in relation to certain actions or transactions. The Company indemnifies its directors, officers, employees and agents, as permitted under the laws of the State of Delaware. In connection with its facility lease, the Company has agreed to indemnify its lessor for certain claims arising from the use of the facilities. The duration of the guarantees and indemnities varies and is generally tied to the life of the agreement. These guarantees and indemnities do not provide for any limitation of the maximum potential future payments the Company could be obligated to make. Historically, the Company has not been obligated nor incurred any payments for these obligations and, therefore, no liabilities have been recorded for these indemnities and guarantees in the accompanying condensed consolidated balance sheets. |
Note 6 - Shareholders' Equity
Note 6 - Shareholders' Equity | 3 Months Ended |
Mar. 31, 2024 | |
Notes to Financial Statements | |
Shareholders' Equity and Share-Based Payments [Text Block] | Note 6. Shareholders Equity Preferred Stock The Company’s amended Certificate of Incorporation authorizes the issuance of 20,000,000 shares of blank-check preferred stock at $0.001 par value. The Board of Directors will be authorized to fix the designations, rights, preferences, powers and limitations of each series of the preferred stock. The Company filed a Certificate of Designations effective on December 30, 2016, which sets aside 5,000,000 shares of Preferred Stock as Series A Preferred Stock. The Series A Preferred Stock carries a coupon payment obligation of 1.5% of the liquidation value per share ($3.03) Common Stock In February 2020, ShipTime Canada amended its rights to exchange one On February 22, 2024, the Company’s Board of Directors authorized the issuance of 54,559 bonus shares of PAID common stock to the CEO/CFO, one additional officer and one employee for services rendered during 2023. This bonus was valued at $84,576 and was based on the closing price of the Company’s common stock at February 21, 2024 and was issued in February 2024. This bonus was recorded in accrued common stock bonus in shareholders’ equity of December 31, 2023. On March 21, 2023, the Company’s Board of Directors authorized the issuance of 46,961 bonus shares of PAID common stock to the CEO/CFO, one additional officer and one employee for services rendered during 2022. This bonus was valued at $82,180 based on the closing price of the Company’s common stock at March 20, 2023 and was issued in March 2023. This bonus was recorded in accrued common stock bonus in shareholders’ equity as of December 31, 2022. The Board of Directors also authorized the issuance of an additional 250,000 shares to the CEO/CFO as a renewal bonus valued at $437,500. $218,750 of share-based compensation expense was recognized immediately as 125,000 of the bonus shares were immediately vested. The remaining $218,750 of share-based compensation expense was recognized ratably during 2023 as 125,000 of the bonus shares were subject to repurchase if the CEO/CFO were to terminate employment during the period ended January 1, 2024. The Company recorded $273,438 of share-based compensation expense for the three-month period ended March 31, 2023 in connection with these additional shares. On March 21, 2023, the Company’s Board of Directors approved the terms of the employment agreement for David Scott, the Company’s COO. Per the terms of the agreement, the Company issued 13,889 shares of PAID common stock to the COO. This compensation was valued at $25,000 based on the closing price of the Company’s common stock at March 31, 2023 and the shares were issued on April 10, 2023. The Company recorded $25,000 of share-based compensation expense in connection with the additional compensation. Share Repurchase In February 2024, the Company entered into an agreement to repurchase 3,996 shares of PAID common stock for a total amount of $3,996. Share-based Incentive Plans On March 23, 2018, the Board of Directors voted to approve the 2018 Stock Option Plan which reserves 450,000 non-qualified stock options to be granted to employees. The Company has three additional stock option plans that include both incentive and non-qualified stock options to be granted to certain eligible employees, non-employee directors, or consultants of the Company. On November 10, 2020, the board voted to increase the 2018 Stock Option Plan from 450,000 options to 900,000 options. On February 22, 2024, the Board of Directors voted to approve the issuance of options to purchase 45,360 shares of common stock to three board members and five employees. The options have an exercise price of $1.55 per share and have vesting periods of 0-3 years and they expire if not exercised within ten years from grant date. For the three-month period ended March 31, 2024 and 2023, the Company recorded $38,984, and $119,100, respectively, of share-based compensation expense related to the vesting of applicable options granted in 2024 and prior years. |
Note 7 - Leases
Note 7 - Leases | 3 Months Ended |
Mar. 31, 2024 | |
Notes to Financial Statements | |
Lessee, Operating Leases and Finance Lease [Text Block] | Note 7. Leases We have an operating lease for our corporate office in Canada. Our lease has a remaining lease term of eleven We report operating lease assets, as well as operating lease current and noncurrent obligations on our condensed consolidated balance sheets for the right to use the building in our business. The components of lease expense were as follows: Three Months Ended March 31, 2024 Three Months Ended March 31, 2023 Operating lease cost $ 5,400 $ 9,451 Supplemental cash flow information related to leases was as follows: Three Months Ended Three Months Ended Cash paid for amounts included in leases: Operating cash flows from operating leases $ 6,114 $ 9,731 Supplemental balance sheet information related to leases was as follows: March 31, 2024 December 31, 2023 Operating leases: Operating lease right-of-use assets $ 8,766 $ 14,161 Operating lease obligations $ 8,767 $ 14,162 March 31, 2024 December 31, 2023 Weighted Average Remaining Lease Term Operating lease (in years) 0.4 0.7 Weighted Average Discount Rate Operating lease 9.0 % 9.0 % A summary of future minimum payments under non-cancellable operating lease commitment as of March 31, 2024 is as follows: Years ending December 31, Total 2024 (remainder of year) 9,152 Total lease liabilities $ 9,152 Less amount representing interest (385 ) Total 8,767 Less current portion (8,767 ) - |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Insider Trading Arr Line Items | |
Material Terms of Trading Arrangement [Text Block] | OTHER INFORMATION Not |
Rule 10b5-1 Arrangement Adopted [Flag] | false |
Rule 10b5-1 Arrangement Terminated [Flag] | false |
Non-Rule 10b5-1 Arrangement Adopted [Flag] | false |
Non-Rule 10b5-1 Arrangement Terminated [Flag] | false |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | General Presentation and Basis of Condensed Consolidated Financial Statements The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), and with the rules and regulations of the Securities and Exchange Commission ("SEC") regarding interim financial reporting. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the Company's audited consolidated financial statements and notes thereto included in the Annual Report on Form 10-K for the year ended December 31, 2023 that was filed on April 1, 2024. In the opinion of management, the Company has prepared the accompanying unaudited condensed consolidated financial statements on the same basis as its audited consolidated financial statements, and these unaudited condensed consolidated financial statements include all adjustments, consisting of normal recurring adjustments necessary for a fair presentation of the results of the interim periods presented. The operating results for the interim periods presented are not necessarily indicative of the results expected for the full year 2024. |
Liquidity and Management’s Plans, Policy [Policy Text Block] | Liquidity and Management s Plans At March 31, 2024, the Company reported cash and cash equivalents of $1,272,409 and net working capital of $3,309,821 and reported cash flows used in operations of $225,449 for the three months ended March 31, 2024. The Company has reported a net income of $299,562 for the three months ended March 31, 2024 and has an accumulated deficit of $69,017,628 at March 31, 2024. Management believes that the Company has adequate cash resources to fund operations during the next 12 months after the filing of this quarterly report on Form 10-Q. In addition, management continues to explore opportunities and has organized additional resources to monetize its patents. However, there can be no assurance that anticipated growth in new business will occur, and that the Company will be successful in launching new products and services. Management continues to seek alternative sources of capital to support the growth of future operations. Although there can be no assurances, the Company believes that the above management plans will be sufficient to meet the Company’s working capital requirements through the end of May 2025 and will have a positive impact on the Company for the foreseeable future. |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation The condensed consolidated financial statements include the accounts of PAID, Inc. and its wholly owned subsidiaries, PAID Run, LLC and ShipTime Canada, Inc. All intercompany accounts and transactions have been eliminated. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency The currency of ShipTime, the Company’s international subsidiary, is in Canadian dollars. Foreign currency denominated assets and liabilities are translated into U.S. dollars using the exchange rates in effect at March 31, 2024 and December 31, 2023. Results of operations and cash flows are translated using the average exchange rates throughout the period. The effect of exchange rate fluctuations on translation of assets and liabilities is included as a separate component of shareholders’ equity in accumulated other comprehensive income. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Geographic Concentrations The Company conducts business in the U.S. and Canada. For customers headquartered in their respective countries, the Company derived approximately 99% of its revenues from Canada and 1% from the U.S. during the three months ended March 31, 2024 and 2023. At March 31, 2024, the Company maintained 100% of its property and equipment, net of accumulated depreciation, in Canada. |
Lessee, Leases [Policy Text Block] | Right of Use Assets A right-of-use asset represents a lessee’s right to use a leased asset for the term of the lease. Our right-of-use assets generally consist of an operating lease for a building. Right-of-use assets are measured initially at the present value of the lease payments, plus any lease payments made before a lease began and any initial direct costs, such as commissions paid to obtain a lease. Right-of-use assets are subsequently measured at the present value of the remaining lease payments, adjusted for incentives, prepaid or accrued rent, and any initial direct costs not yet expensed. |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Long-Lived Assets The Company reviews the carrying values of its long-lived assets for possible impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the expected future cash flow from the use of the asset and its eventual disposition is less than the carrying amount of the asset, an impairment loss is recognized and measured using the fair value of the related asset. No |
Revenue [Policy Text Block] | Revenue Recognition The Company generates revenue principally from fees for coordinating shipping services, sales of shipping calculator subscriptions, brewery management software subscriptions, merchant processing services and client services. The Company recognizes revenue by taking into consideration the following five steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as) the entity satisfies a performance obligation. Due to the nature of the Company’s product offerings and contracts associated with those products, the Company’s deliverables do not fluctuate, and its revenue recognition is consistent. Nature of Goods and Services For label generation service revenues, the Company recognizes revenue when a customer has successfully prepared a shipping label and scheduled a pickup. Customers with pickups after the end of the reporting period are recorded as contract liabilities on the condensed consolidated balance sheets. The service is offered to consumers via an online registration and allows users to create a shipping label using a credit card on their account (all customers must have a valid credit card on file to process shipments on the ShipTime platform). For shipping calculator revenues and brewery management software revenues, the Company recognizes subscription revenue on a monthly basis. Shipping calculator customers’ renewal dates are based on their date of installation and registration of the shipping calculator line of products. The timing of the revenue recognition and cash collection may vary within a given quarter and the deposits for future services are recorded as contract liabilities on the condensed consolidated balance sheets. Brewery management software subscribers are billed monthly at the first of the month. All payments are made via credit card for the following month. Merchant processing revenue consists of fees a seller pays us to process their payment transactions and is recognized upon authorization of a transaction. Revenue is recognized net of estimated refunds, which are reversals of transactions initiated by sellers. We act as the merchant of record for our sellers, which puts us in their shoes with respect to card networks and puts the risk for refunds and chargebacks on us. The gross transaction fees collected from sellers is recognized as revenue as we are the primary obligor to the seller and are responsible for processing the payment, have latitude in establishing pricing with respect to the sellers and other terms of service, have sole discretion in selecting the third party to perform the settlement, and assume the credit risk for the transaction processed. Revenue Disaggregation The Company operates in four Performance Obligations At contract inception, an assessment of the goods and services promised in the contracts with customers is performed and a performance obligation is identified for each distinct promise to transfer to the customer a good or service (or bundle of goods or services). To identify the performance obligations, the Company considers all of the goods or services promised in the contract regardless of whether they are explicitly stated or are implied by customary business practices. Revenue is recognized when the performance obligation has been met, which is when the customer has successfully prepared a shipping label and had a pickup for shipping coordination and label generation services. The Company considers control to have transferred at that time because the Company has a present right to payment at that time, the Company has provided the shipping label, and the customer is able to direct the use of, and obtain substantially all of the remaining benefits from, the shipping label. For arrangements under which the Company provides a subscription for shipping calculator services and brewery management software, the Company satisfies its performance obligations over the life of the subscription, typically twelve months or less. Merchant processing customers receive a merchant identification number which allows them to process credit card transactions. Once the transaction is approved, the funds are distributed in an overnight feed and the Company has met its performance obligation. The Company has no shipping and handling activities related to contracts with customers. Revenues are recognized net of any taxes collected from customers, which are subsequently remitted to government authorities. Significant Payment Terms Pursuant to the Company’s contracts with its customers, amounts are collected up front primarily through credit/debit card transactions. The Company has offered its customers consolidated payments which are billed weekly and are paid with a credit card on file. Accordingly, the Company determined that its contracts with customers do not include extended payment terms or a significant financing component. Measurement of Credit Losses The Company has accounts receivable and note receivable and monitors the granting of credit and collecting debt on an ongoing basis. The Company maintains an allowance for doubtful accounts based on historical loss patterns, the number of days that billings are past due, and an evaluation of potential risk of loss associated with delinquent accounts. The Company has one note receivable and is a senior secure lender with an absolute obligation. The note is evaluated for credit losses by considering the contractual obligation, the valuation of the assets and the senior position of the repayment. Variable Consideration In some cases, the nature of the Company’s contracts may give rise to variable consideration, including rebates and cancellations or other similar items that generally decrease the transaction price. Variable consideration is estimated at the most likely amount that is expected to be earned. Estimated amounts are included in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. Estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of the anticipated performance and all information (historical, current and forecasted) that is reasonably available. Revenues are recorded net of variable consideration, such as rebates, refunds, and cancellations. Warranties The Company’s products and services are provided on an “as is” basis and no warranties are included in the contracts with customers. Also, the Company does not offer separately priced extended warranty or product maintenance contracts. Contract Assets Typically, the Company has already collected revenue from the customer at the time it has satisfied its performance obligation. Accordingly, the Company has only a small balance of accounts receivable, totaling $290,948 and $205,647 as of March 31, 2024 and December 31, 2023, respectively. The Company has no one Contract Liabilities (Deferred Revenue) Contract liabilities are recorded when cash payments are received in advance of the Company’s performance (including rebates). Contract liabilities were $13,420 and $15,382 at March 31, 2024 and December 31, 2023, respectively. During the three months ended March 31, 2024, the Company recognized revenues of $15,382 related to contract liabilities outstanding at the beginning of the period. |
Earnings Per Share, Policy [Policy Text Block] | Income (Loss) Per Common Share Basic earnings (loss) per share represent income (loss) divided by the weighted-average number of common shares outstanding during the period. Diluted income (loss) per share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income (loss) that would result from the assumed issuance. The potential common shares that may be issued by the Company relate to outstanding stock options and have been excluded from the computation of diluted income (loss) per share if they would reduce the reported loss per share and therefore have an anti-dilutive effect. For the three months ended March 31, 2023, there were approximately 7,500 of potentially dilutive shares excluded from the diluted loss per share calculation, as their effect would be anti-dilutive. The following is a reconciliation of the numerators and denominators of the basic and diluted income (loss) per common share computations for the three months ended March 31, 2024 and 2023. Three Months Ended March 31, 2024 Three Months Ended March 31, 2023 Numerator: Net income (loss) $ 299,562 $ (294,928 ) Denominator: Basic weighted-average shares outstanding 8,032,421 7,722,536 Basic income (loss) per share $ 0.04 $ (0.04 ) Effect of dilutive securities 5,696 - Diluted weighted-average shares outstanding 8,038,117 7,722,536 Diluted income (loss) per share $ 0.04 $ (0.04 ) |
Segment Reporting, Policy [Policy Text Block] | Segment Reporting The Company reports information about segments of its business in its annual consolidated financial statements and reports selected segment information in its quarterly reports issued to shareholders. The Company also reports on its entity-wide disclosures about the products and services it provides and reports revenues and its major customers. The Company’s four four a. Client services; b. Merchant processing services; c. Shipping coordination and label generation services; and d. Corporate operations The Company evaluates performance and allocates resources based upon operating income. The accounting policies of the reportable segments are the same as those described in this summary of significant accounting policies. The Company’s chief operating decision maker is the Chief Executive Officer/Chief Financial Officer. The following table compares total net revenue for the periods indicated. Three Months Ended March 31, 2024 March 31, 2023 Client services $ 7,260 $ 8,665 Merchant processing services 13,645 24,843 Shipping coordination and label generation services 4,139,845 3,772,767 Total net revenues $ 4,160,750 $ 3,806,275 The following table compares total loss from operations for the periods indicated. Three Months Ended March 31, 2024 March 31, 2023 Client services $ 3,455 $ 2,118 Merchant processing services (22,562 ) 5,759 Shipping coordination and label generation services 52,664 (297,757 ) Corporate operations (71,384 ) (129,648 ) Total loss from operations $ (37,827 ) $ (419,528 ) |
Subsequent Events, Policy [Policy Text Block] | Subsequent Events The Company has evaluated subsequent events through the filing date of this Form 10-Q and has determined that no subsequent events have occurred that would require recognition in the condensed consolidated financial statements of disclosure in the notes thereto, other than disclosed herein. |
Reclassification, Comparability Adjustment [Policy Text Block] | Reclassification Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations. An adjustment has been made to the segment reporting for the period ended March 31, 2023, to consolidate revenue reporting for smaller segments of the Company. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2023-09, Improvements to Income Tax Disclosures (“ASU 2023-09”), which requires more detailed income tax disclosures. The guidance requires entities to disclose disaggregated information about their effective tax rate reconciliation as well as expanded information on income taxes paid by jurisdiction. The disclosure requirements will be applied on a prospective basis, with the option to apply them retrospectively. The standard is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. We are currently evaluating the disclosure requirements related to the new standard . In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures which provides guidance to improve the disclosures about a public entity’s reportable segments and address requests from investors for additional, more detailed information about reportable segment’s expenses. The new guidance must be adopted for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted, and retrospective application is required for all periods presented. We are currently evaluating the impact of this standard on our consolidated financial statements and related disclosures. |
Note 1 - Organization and Sig_2
Note 1 - Organization and Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended March 31, 2024 Three Months Ended March 31, 2023 Numerator: Net income (loss) $ 299,562 $ (294,928 ) Denominator: Basic weighted-average shares outstanding 8,032,421 7,722,536 Basic income (loss) per share $ 0.04 $ (0.04 ) Effect of dilutive securities 5,696 - Diluted weighted-average shares outstanding 8,038,117 7,722,536 Diluted income (loss) per share $ 0.04 $ (0.04 ) |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended March 31, 2024 March 31, 2023 Client services $ 7,260 $ 8,665 Merchant processing services 13,645 24,843 Shipping coordination and label generation services 4,139,845 3,772,767 Total net revenues $ 4,160,750 $ 3,806,275 Three Months Ended March 31, 2024 March 31, 2023 Client services $ 3,455 $ 2,118 Merchant processing services (22,562 ) 5,759 Shipping coordination and label generation services 52,664 (297,757 ) Corporate operations (71,384 ) (129,648 ) Total loss from operations $ (37,827 ) $ (419,528 ) |
Note 3 - Accrued Expenses (Tabl
Note 3 - Accrued Expenses (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | March 31, 2024 (unaudited) December 31, 2023 Payroll and related costs $ 138,404 $ 238,161 Royalties 40,075 40,075 Accrued cost of revenues 191,881 119,737 Sales tax 22,228 22,228 Other 410 410 Total $ 392,998 $ 420,611 |
Note 4 - Intangible Assets (Tab
Note 4 - Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Notes Tables | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | Patents Trade Name Technology & Software Customer Relationships Total Gross carrying amount $ 16,000 $ 790,844 $ 588,818 $ 4,653,195 $ 6,048,857 Accumulated amortization (16,000 ) (790,844 ) (588,818 ) (2,354,330 ) (3,749,982 ) $ - $ - $ - $ 2,298,865 $ 2,298,865 Patents Trade Name Technology & Software Customer Relationships Total Gross carrying amount $ 16,000 $ 807,420 $ 599,404 $ 4,746,242 $ 6,169,066 Accumulated amortization (16,000 ) (807,420 ) (599,404 ) (2,323,652 ) (3,746,476 ) $ - $ - $ - $ 2,422,590 $ 2,422,590 |
Note 7 - Leases (Tables)
Note 7 - Leases (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Notes Tables | |
Lease, Cost [Table Text Block] | Three Months Ended March 31, 2024 Three Months Ended March 31, 2023 Operating lease cost $ 5,400 $ 9,451 |
Cash Flow, Leases, Lessee [Table Text Block] | Three Months Ended Three Months Ended Cash paid for amounts included in leases: Operating cash flows from operating leases $ 6,114 $ 9,731 |
Balance Sheet, Leases, Lessee [Table Text Block] | March 31, 2024 December 31, 2023 Operating leases: Operating lease right-of-use assets $ 8,766 $ 14,161 Operating lease obligations $ 8,767 $ 14,162 |
Weighted Average Remaining Lease Term and Discount Rate [Table Text Block] | March 31, 2024 December 31, 2023 Weighted Average Remaining Lease Term Operating lease (in years) 0.4 0.7 Weighted Average Discount Rate Operating lease 9.0 % 9.0 % |
Lessee, Operating Lease, Liability, to be Paid, Maturity [Table Text Block] | Years ending December 31, Total 2024 (remainder of year) 9,152 Total lease liabilities $ 9,152 Less amount representing interest (385 ) Total 8,767 Less current portion (8,767 ) - |
Note 1 - Organization and Sig_3
Note 1 - Organization and Significant Accounting Policies (Details Textual) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) shares | Dec. 31, 2023 USD ($) | |
Cash Equivalents, at Carrying Value | $ 1,272,409 | ||
Net Working Capital | 3,309,821 | ||
Net Cash Provided by (Used in) Operating Activities | (225,449) | $ (15,071) | |
Net loss | 299,562 | (294,928) | |
Retained Earnings (Accumulated Deficit) | (69,017,628) | $ (69,317,190) | |
Asset Impairment Charges | $ 0 | $ 0 | |
Number of Reportable Segments | 6 | ||
Accounts Receivable, after Allowance for Credit Loss, Current | $ 290,948 | 205,647 | |
Contract with Customer, Liability | 13,420 | $ 15,382 | |
Contract with Customer, Liability, Revenue Recognized | $ 15,382 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | shares | 7,500 | ||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||
Number of Major Customers | 0 | 1 | |
CANADA | |||
Property and Equipment Net Percentages | 100% | ||
CANADA | Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk, Percentage | 99% | ||
UNITED STATES | Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk, Percentage | 1% |
Note 1 - Organization and Sig_4
Note 1 - Organization and Significant Accounting Policies - Reconciliation of Basic and Diluted Earnings Per Share (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Net income (loss) | $ 299,562 | $ (294,928) |
Weighted average number of common shares outstanding – basic (in shares) | 8,032,421 | 7,722,536 |
Net income (loss) per share – basic (in dollars per share) | $ 0.04 | $ (0.04) |
Effect of dilutive securities (in shares) | 5,696 | 0 |
Diluted weighted-average shares outstanding (in shares) | 8,038,117 | 7,722,536 |
Net income (loss per share – diluted (in dollars per share) | $ 0.04 | $ (0.04) |
Note 1 - Organization and Sig_5
Note 1 - Organization and Significant Accounting Policies - Schedule of Segment Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenues, net | $ 4,160,750 | $ 3,806,275 |
Operating income loss | (37,827) | (419,528) |
Service [Member] | ||
Revenues, net | 7,260 | 8,665 |
Operating income loss | 3,455 | 2,118 |
Merchant Processing Services [Member] | ||
Revenues, net | 13,645 | 24,843 |
Operating income loss | (22,562) | 5,759 |
Shipping Coordination and Label Generation Services [Member] | ||
Revenues, net | 4,139,845 | 3,772,767 |
Operating income loss | 52,664 | (297,757) |
Corporate Operations [Member] | ||
Operating income loss | $ (71,384) | $ (129,648) |
Note 2 - Note Receivable (Detai
Note 2 - Note Receivable (Details Textual) - USD ($) | 3 Months Ended | ||||||
Jul. 19, 2023 | Oct. 13, 2022 | Mar. 31, 2024 | Mar. 31, 2023 | Mar. 26, 2024 | Dec. 31, 2023 | Oct. 31, 2022 | |
Investment Income, Interest | $ 141,780 | $ 0 | |||||
Warrant [Member] | |||||||
Investment, Expiration Term (Year) | 5 years | ||||||
Investment, Purchase Price, Percentage of Original Principal | 50% | ||||||
Securities Purchase Agreement [Member] | |||||||
Financing Receivable, after Allowance for Credit Loss, Total | $ 1,875,000 | ||||||
Note Receivable, Purchase Discount | 20% | 25% | 20% | ||||
Financing Receivable, Unamortized Purchase Premium (Discount) | $ 375,000 | $ 375,000 | |||||
Financing Receivable, Term (Month) | 9 months | 9 months | |||||
Financing Receivable, Interest Rate, Stated Percentage | 20% | 20% | |||||
Investment Income, Amortization of Discount | $ 578,425 | $ 270,833 | 201,209 | $ 125,000 | |||
Financing Receivable, Accrued Interest, after Allowance for Credit Loss | $ 203,425 | ||||||
Note Receivable, Potential Investment Amount | 2,000,000 | ||||||
Note Receivable, Over Allotment Option | $ 500,000 | ||||||
Financing Receivable, before Allowance for Credit Loss | $ 500,000 | ||||||
Investment Income, Interest | $ 141,780 |
Note 3 - Accrued Expenses - Sch
Note 3 - Accrued Expenses - Schedule of Accrued Expenses (Details) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Payroll and related costs | $ 138,404 | $ 238,161 |
Royalties | 40,075 | 40,075 |
Accrued cost of revenues | 191,881 | 119,737 |
Sales tax | 22,228 | 22,228 |
Other | 410 | 410 |
Total | $ 392,998 | $ 420,611 |
Note 4 - Intangible Assets (Det
Note 4 - Intangible Assets (Details Textual) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Amortization of Intangible Assets | $ 74,285 | $ 74,066 |
Note 4 - Intangible Assets - Sc
Note 4 - Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Intangible asset, gross | $ 6,048,857 | $ 6,169,066 |
Accumulated amortization | (3,749,982) | (3,746,476) |
Finite-Lived Intangible Assets, Net | 2,298,865 | 2,422,590 |
Patents [Member] | ||
Intangible asset, gross | 16,000 | 16,000 |
Accumulated amortization | (16,000) | (16,000) |
Finite-Lived Intangible Assets, Net | 0 | 0 |
Trade Names [Member] | ||
Intangible asset, gross | 790,844 | 807,420 |
Accumulated amortization | (790,844) | (807,420) |
Finite-Lived Intangible Assets, Net | 0 | 0 |
Technology and Software [Member] | ||
Intangible asset, gross | 588,818 | 599,404 |
Accumulated amortization | (588,818) | (599,404) |
Finite-Lived Intangible Assets, Net | 0 | 0 |
Customer Relationships [Member] | ||
Intangible asset, gross | 4,653,195 | 4,746,242 |
Accumulated amortization | (2,354,330) | (2,323,652) |
Finite-Lived Intangible Assets, Net | $ 2,298,865 | $ 2,422,590 |
Note 6 - Shareholders' Equity (
Note 6 - Shareholders' Equity (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | ||||||||||||||
Feb. 22, 2024 | Feb. 02, 2024 | Mar. 21, 2023 | Mar. 20, 2023 | Mar. 21, 2021 | Jan. 31, 2020 | Feb. 29, 2024 | Feb. 29, 2020 | Feb. 28, 2020 | Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2020 | Nov. 10, 2020 | Mar. 23, 2018 | Dec. 30, 2016 | |
Preferred Stock, Shares Authorized | 20,000,000 | |||||||||||||||
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | |||||||||||||||
Stock Issued During Period, Shares, New Issues | 54,559 | |||||||||||||||
Deferred Compensation Arrangement with Individual, Fair Value of Shares Issued | $ 84,576 | |||||||||||||||
Share-Based Payment Arrangement, Expense | $ 38,984 | $ 392,538 | ||||||||||||||
Treasury Stock, Shares, Acquired | 3,996 | |||||||||||||||
Treasury Stock, Common, Value | $ 3,996 | 168,836 | $ 164,840 | |||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period (in shares) | 45,360 | |||||||||||||||
Non-qualified Stock Option [Member] | Two Thousand Eighteen Stock Option Plan [Member] | ||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Authorized | 900,000 | 450,000 | ||||||||||||||
Share-Based Payment Arrangement, Option [Member] | ||||||||||||||||
Share-Based Payment Arrangement, Expense | 38,984 | $ 119,100 | ||||||||||||||
CEO/CFO [Member] | ||||||||||||||||
Stock Issued During Period, Shares, Issued for Services | 46,961 | |||||||||||||||
Stock Issued During Period, Value, Issued for Services | $ 82,180 | |||||||||||||||
Share-Based Payment Arrangement, Expense | $ 273,438 | |||||||||||||||
Deferred Compensation Arrangement with Individual, Shares Subject to Repurchase (in shares) | 125,000 | |||||||||||||||
Chief Executive Officer [Member] | ||||||||||||||||
Deferred Compensation Arrangement with Individual, Shares Issued | 250,000 | |||||||||||||||
Share-Based Payment Arrangement, Expense | $ 437,500 | |||||||||||||||
Chief Financial Officer [Member] | ||||||||||||||||
Deferred Compensation Arrangement with Individual, Shares Issued | 125,000 | |||||||||||||||
Share-Based Payment Arrangement, Expense | $ 218,750 | $ 218,750 | ||||||||||||||
Chief Operating Officer [Member] | ||||||||||||||||
Deferred Compensation Arrangement with Individual, Fair Value of Shares Issued | $ 25,000 | |||||||||||||||
Deferred Compensation Arrangement with Individual, Shares Issued | 13,889 | |||||||||||||||
Share-Based Payment Arrangement, Expense | $ 25,000 | |||||||||||||||
ShipTime Acquisition [Member] | ||||||||||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 5,918 | |||||||||||||||
Conversion of Series A Preferred Stock to Common Stock [Member] | ||||||||||||||||
Conversion of Stock, Shares Converted (in shares) | 1,015,851 | |||||||||||||||
Conversion of Stock, Shares Issued (in shares) | 1,015,851 | |||||||||||||||
Additional Conversion of Series A Preferred Stock to Common Stock [Member] | ||||||||||||||||
Conversion of Stock, Shares Issued (in shares) | 2,089,298 | |||||||||||||||
Series A Preferred Stock [Member] | ||||||||||||||||
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 | ||||||||||||||
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | ||||||||||||||
Preferred Stock, Shares Issued | 0 | 0 | 5,000,000 | |||||||||||||
Preferred Stock, Coupon Payment Obligation, Percentage of Liquidation Value Per Share | 1.50% | |||||||||||||||
Preferred Stock, Liquidation Preference Per Share | $ 3.03 | |||||||||||||||
ShipTime Canada Stock [Member] | ||||||||||||||||
Conversion of Stock, Shares, Convertible | 1 | |||||||||||||||
PAID Preferred Stock [Member] | ||||||||||||||||
Conversion of Stock, Shares Issuable | 45 | |||||||||||||||
PAID Common Stock [Member] | ||||||||||||||||
Conversion of Stock, Shares Issuable | 311 | 356 | ||||||||||||||
Common Stock Exercised Shares | 1,461,078 | |||||||||||||||
Common Stock, Capital Shares Reserved for Future Issuance | 2,106,808 | |||||||||||||||
PAID Series A Preferred Stock [Member] | ||||||||||||||||
Preferred Stock Exercised Shares | 1,461,078 |
Note 7 - Leases (Details Textua
Note 7 - Leases (Details Textual) | Mar. 31, 2024 |
Minimum [Member] | |
Lessee, Operating Lease, Remaining Lease Term (Month) | 11 months |
Note 7 - Leases - Schedule of L
Note 7 - Leases - Schedule of Lease Expense (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Operating lease cost | $ 5,400 | $ 9,451 |
Note 7 - Leases - Schedule of S
Note 7 - Leases - Schedule of Supplemental Cash Flow Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Operating cash flows from operating leases | $ 6,114 | $ 9,731 |
Note 7 - Leases - Schedule of_2
Note 7 - Leases - Schedule of Supplemental Balance Sheet Information (Details) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Operating lease right-of-use assets, net | $ 8,766 | $ 14,161 |
Current portion of operating lease obligations | $ 8,767 | $ 14,162 |
Note 7 - Leases - Schedule of_3
Note 7 - Leases - Schedule of Lease Terms (Details) | Mar. 31, 2024 | Dec. 31, 2023 |
Weighted Average Remaining Lease Term | ||
Operating lease (in years) (Year) | 4 months 24 days | 8 months 12 days |
Weighted Average Discount Rate | ||
Operating lease | 9% | 9% |
Note 7 - Leases -Schedule of Op
Note 7 - Leases -Schedule of Operating Lease Minimum Payments (Details) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Lessee, Operating Lease, Liability, to be Paid, Year One | $ 9,152 | |
Total lease liabilities | 9,152 | |
Less amount representing interest | (385) | |
Total | 8,767 | |
Less current portion | $ (8,767) | $ (14,162) |