What changed in this filing

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Item 1. Business

2024-04-01 compared with 2023-03-31 · 39 added, 51 removed, 54 unchanged (63% of the section changed)

(the “Company”

or “PAID”) was incorporated in Delaware on August 9, 1995.

The Company has multiple web addresses, www.paid.com, which offers updated information on various aspects of our operations and www.shiptime.com which showcases our online label generation software.

(the “Company” or “PAID”) was incorporated in Delaware on August 9, 1995.

The Company has multiple web addresses, www.paid.com, which offers updated information on various aspects of our operations and www.shiptime.com which showcases our online label generation software.

Information contained in the Company's website shall not be deemed to be a part of this Annual Report.

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The Company's telephone number is (617) 861-6050.

We file annual reports on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K with the Securities and Exchange Commission (the “SEC”).

These reports, any amendments to these reports, proxy and information statements and certain other documents we file with the SEC are available through the SEC's website at www.sec.gov or free of charge on our website as soon as reasonably practicable after we file the documents with the SEC.

We file annual reports on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K with the Securities and Exchange Commission (the “SEC”).

These reports, any amendments to these reports, proxy and information statements and certain other documents we file with the SEC are available through the SEC's website at www.sec.gov or free of charge on our website as soon as reasonably practicable after we file the documents with the SEC.

The public may also read and copy these reports and any other materials we file with the SEC at the SEC's Public Reference Room at 100 F Street, NE, Washington, D.C.

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ShipTime Inc.

ShipTime’s platform provides its members with the ability to quote, process, track and dispatch shipments while getting preferred rates on packages and skidded less than truckload (“LTL”) freight shipments throughout North America and around the world.

In addition to these features, ShipTime also provides what it refers to as “Heroic Multilingual Customer Support.”

In this capacity, ShipTime acts as an advocate on behalf of its clients in resolving matters concerning orders and shipping. 

In addition to these features, ShipTime also provides what it refers to as “Heroic Multilingual Customer Support.” In this capacity, ShipTime acts as an advocate on behalf of its clients in resolving matters concerning orders and shipping.

With an increasing focus and service offering for e-commerce merchants;

which include online shopping carts, inventory management, payment services, client prospecting and retention software, ShipTime can help merchants worldwide grow and scale their businesses. ShipTime generates monthly revenue through transactions and “software as a service”

(SAAS) offerings.

which include online shopping carts, inventory management, payment services, client prospecting and retention software, ShipTime can help merchants worldwide grow and scale their businesses.

ShipTime generates monthly revenue through transactions and “software as a service” (SAAS) offerings.

It currently serves in excess of 76,900 members in North America and desires to expand its services worldwide.

AuctionInc Software.

AuctionInc is a suite of online shipping and tax management tools assisting businesses with e-commerce storefronts, shipping solutions, tax calculation, inventory management, and auction processing.

The application was designed to focus on real-time carrier calculated shipping rates and tax calculations.

The product does have tools to assist with other aspects of the fulfillment process, but the main purpose of the product is to provide accurate shipping and tax calculations and packaging algorithms that provide customers with the best possible shipping and tax solutions.

This product has been retired and the Company is transitioning these clients to our PaidWeb, PaidCart and PaidShipping solutions.

BeerRun Software.

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Craft brewing continues to grow in the United States and we feel that there is potential to grow this portion of our business.

PaidPayments provides commerce solutions to small - and medium-sized businesses by enabling them to sell their goods and services, accept payment, and create repeat sales though an online payment processing solution.

The Company has offered PaidPayments as a Payment Facilitator since 2019, which enables our merchants to get the benefit of instant boarding and discounted rates.

Our platform provides all aspects required for payment processing, including merchant boarding, underwriting, fraud monitoring, settlement, funding to the sub-merchant, and monthly reporting and statements.

The Company controls all of these necessary aspects in the payment process and is then able to supply a one-step boarding process for our partners and value-added resellers.

This capability also provides cost advantages, rapid response to market needs, simplified processes for boarding business and a seamless interface for our merchant customers.

includes the PaidPayment, PaidWeb, PaidCart and PaidShipping products that 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.

Business Strategy

The Company’s focus in 2022 was to effectively execute the integration of Paid Inc.

and ShipTime while ensuring that our vision (“

To provide a comprehensive e-commerce platform for small to medium enterprises ”

) continued to move toward this goal by the adding fundamental tools for our members to compete in today’s on-line marketplace.

The Company’s focus in 2023 was to effectively execute the integration of Paid Inc.

and ShipTime while ensuring that our vision (“ To provide a comprehensive e-commerce platform for small to medium enterprises ” ) continued to move toward this goal by the adding fundamental tools for our members to compete in today’s on-line marketplace.

While the ShipTime portion of our business is our key revenue driver;

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By continuing to offer small to medium enterprises meaningful solutions and an integrated infrastructure platform we can enhance the value proposition to both our channel partners and our growing customer base allowing us to cost effectively break into new markets.

In order to support the Company’s members via our strategic build-out of e-commerce services, our Heroic Support™

team remains focused on a Support and Customer Success mindset.

In order to support the Company’s members via our strategic build-out of e-commerce services, our Heroic Support™ team remains focused on a Support and Customer Success mindset.

Our Sales and Account Management Teams will be engaging with our prospects and members to provide guidance and support in utilizing Paid platform tools and services.

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Paid products will continue to grow in 2024 with the launch of our PaidShipping, PaidWeb and PaidCart platforms.

Our strategy for the legacy shipping calculator clients includes migrating the AuctionInc clients to our new Paid platform as we have several Paid options that meet the needs of this small group of clients.

BeerRun continues to be a valuable component of the Company and remains effective for the existing clients.

Our strategy for 2023 is to wind down this segment of the business as we are no longer investing in new technologies and development in the Craft Brewing industry.

Our strategy for 2024 is to continue to wind down this segment of the business as we are no longer investing in new technologies and development in the Craft Brewing industry.

As ShipTime has been cash flow positive we are able to take advantage of the excess cash with a short-term investment.

During 2022, the Company entered into a Securities Purchase Agreement with respect to a secured $1.875 million convertible note made by Embolx, Inc., a California corporation. Pursuant to the Securities Purchase Agreement, the Company loaned USD $1.5 million to Embolx.

The Note is 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 has the option to convert the note into shares of common stock of Embolx. 

During 2022, the Company entered into a Securities Purchase Agreement with respect to a secured $1.875 million convertible note made by Embolx, Inc., a California corporation.

Pursuant to the Securities Purchase Agreement, the Company loaned USD $1.5 million to Embolx.

The Note was purchased at a 20% ($375,000) original issue discount and was subject to a 9-month maturity, after which, if unpaid, would then carry a 20% interest rate.

The Company has the option to convert the note into shares of common stock of Embolx.

As additional consideration, the Company received a 5-year Warrant to purchase additional shares of common stock of Embolx.

The shares are subject to certain piggyback registration rights under a Registration Rights Agreement, and the note is secured by all assets of Embolx pursuant to a Security Agreement. Under the Securities Purchase Agreement, the Company has a right to purchase additional shares on the same terms for a total potential investment amount of $2 million. Management continues to evaluate the financial status of Embolx and has considered the extension of the note as it has a favorable return on investment. 

The shares are subject to certain piggyback registration rights under a Registration Rights Agreement, and the note is secured by all assets of Embolx pursuant to a Security Agreement.

Under the Securities Purchase Agreement, the Company has the right to purchase additional shares on the same terms for a total potential investment amount of $2 million.

An agreement to extend the Note has been authorized which includes an additional $500,000 investment with a 25% original issue discount subject to a 11-month maturity.

Embolx is currently working with potential buyers and the expected timeline to close a sale is within the 11-month note period.

Additionally, Management feels that the assets of Embolx are sufficient to satisfy the obligation of the note receivable.

Management continues to evaluate the financial status of Embolx and has determined that they will need additional capital to fund future operations

The business strategy described above is intended to expand our markets, increase revenue per member while enhancing our opportunities in the online ecommerce market.

There are always a variety of factors that may impact our plans and inhibit our success.

See “Risk Factors”

included in Item 1A.

See “Risk Factors” included in Item 1A.

Therefore, we have no guarantees and can provide no assurances that our plans will be successful.

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The Company continues to successfully nurture and grow the relationships with our channel partners and has added new relationships that are global in scope.

While much of the growth and success in 2022 was the result of the cooperative efforts of ShipTime, our channel partners and our new marketing strategies.

Additions to our marketing team have allowed us to continue to pursue digital marketing efforts, as well as increasing our in-house sales team to fast forward our growth.

While much of the growth and success in 2023 was the result of the cooperative efforts of ShipTime sales staff, our channel partners and our marketing strategies.

Additions to our sales team have allowed us to continue to pursue opportunities with channel partners.

The Company will continue to market PAID and ShipTime throughout 2024 and beyond.

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Based on experience and feedback with existing partnerships that promote our product lines, the Company believes that creating additional partnerships beyond North America is an effective marketing tool to promote and encourage new registrations.

Additional resources and marketing initiatives will be utilized to increase onboarding and converting our members to being active long-time users of the Company’s services in order to accelerate our growth.

Revenue Sources

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In addition to the label generation services we continue to focus on launching our new e-commerce platforms.

See “Risk Factors”

included in Item 1A.

See “Risk Factors” included in Item 1A.

We have no guarantees and can provide no assurances that our plans will be successful.

Technology within the logistics industry is highly competitive and we have focused a variety of differentiators including our Heroic Customer Support™

to elevate our services beyond those of our competition.

Technology within the logistics industry is highly competitive and we have focused a variety of differentiators including our Heroic Support™ to elevate our services beyond those of our competition.

Our product offerings may also be available from other companies in our industry, and we continue to emphasize value and quality customer support.

The ShipTime trademark has been registered in both Canada and the United States.

Our line of AuctionInc shipping calculator software is proprietary.

Our intellectual property rights do not guarantee any competitive advantage and may not sufficiently protect us against competitors with similar technology.

We believe that our products and other proprietary rights do not infringe on the proprietary rights of third parties.

However, there can be no assurance that third parties will not assert infringement claims against us in the future with respect to current or future products or other works of ours.

We also utilize free open-source technology in certain areas.

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We use open-source software and technology as well to support the growing social and viral opportunities on the internet.

By using 'best-of-breed' products and tools we can maximize our clients’

opportunities while minimizing our costs, which we are able to pass on to our customers.

As with any software product BeerRun is not excluded from the competitive market.

There are a growing number of competitors in the industry all with a unique perspective.

The updates to our existing offering have helped us maintain a presence in the brewery management industry.

Our support team stays informed with the competition and we have the ability to modify our product as the industry changes.

By using 'best-of-breed' products and tools we can maximize our clients’ opportunities while minimizing our costs, which we are able to pass on to our customers.

Research and Development

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Our strategy includes continuous user enhancements on our existing platforms, new websites, updates to our e-commerce shopping cart solution, enhancements to our merchant payment processing platform, shipping calculator enhancements and many additional features and upgrades to our online shopping and shipping tools.

As of March 31, 2023, the Company currently has twenty-two full time equivalent employees and one part-time employee.

As of April 1, 2024, the Company currently has twenty-seven full time equivalent employees and one part-time employee.

We have no collective bargaining agreements and consider the relationship with our employees to be excellent.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business