PAID INC 10-Q

ITEM 1. LEGAL PROCEEDINGS From time to time we may be a party to various legal proceedings arising in the ordinary course of our business. Our management is not aware of any litigation outstanding, threatened or pending as of the date hereof by or against us or our properties which we believe would be material to our financial condition or results of operations, except with respect to a dispute related to its non-renewal of the employment agreement with Mr. Allan Pratt, the Company's former President and CEO, in which Mr. Pratt appears to be treating it as a termination which would trigger a two-year severance payment. Around the same time that Mr. Pratt’s employment term expired, the Company’s Board of Directors voted to reduce the board from five to three, and Mr. Pratt and Mr. Austin Lewis, 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. 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. On November 9, 2023 the Delaware courts dismissed Mr. Pratt’s claim relating to the board reduction from five to three. On December 5, 2024 the trial is scheduled to begin on the claims made in the Delaware courts. 20 ITEM 1A. RISK FACTORS There are no material changes for the risk factors previously disclosed on Form 10-K for the year ended December 31, 2023. ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS There were no issuances of unregistered securities for the three months ended September 30, 2024. ITEM 3. DEFAULTS UPON SENIOR SECURITIES None. ITEM 4. MINE SAFETY DISCLOSURES Not Applicable. ITEM 5. OTHER INFORMATION Not Applicable ITEM 6. EXHIBITS 10.1 Amendment to 2018 Non-Qualified Stock Option Plan (incorporated by reference to Exhibit 10.1 to Form 10-Q filed on November 13, 2020) 31.1 CEO and CFO Certification required under Section 302 of Sarbanes-Oxley Act of 2002 32 CEO and CFO Certification required under Section 906 of Sarbanes-Oxley Act of 2002 101.INS Inline XBRL Instance Document (filed herewith) 101.SCH Inline XBRL Taxonomy Extension Schema (filed herewith) 101.CAL Inline XBRL Taxonomy Extension Calculation Linkbase (filed herewith) 101.DEF Inline XBRL Taxonomy Extension Definition Linkbase (filed herewith) 101.LAB Inline XBRL Taxonomy Extension Label Linkbase (filed herewith) 101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase (filed herewith) 104 Cover Page Interactive Data File (embedded within the Inline XBRL Document and include in Exhibit 101) 21 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. PAID, INC. By: /s/ W. Austin Lewis IV Date: November 14, 2024 W. Austin Lewis, IV, CEO, CFO LIST OF EXHIBITS 10.1 Amendment to 2018 Non-Qualified Stock Option Plan (incorporated by reference to Exhibit 10.1 to Form 10-Q filed on November 13, 2020) 31.1 CEO and CFO Certification required under Section 302 of Sarbanes-Oxley Act of 2002 32 CEO and CFO Certification required under Section 906 of Sarbanes-Oxley Act of 2002 101.INS Inline XBRL Instance Document (filed herewith) 101.SCH Inline XBRL Taxonomy Extension Schema (filed herewith) 101.CAL Inline XBRL Taxonomy Extension Calculation Linkbase (filed herewith) 101.DEF Inline XBRL Taxonomy Extension Definition Linkbase (filed herewith) 101.LAB Inline XBRL Taxonomy Extension Label Linkbase (filed herewith) 101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase (filed herewith) 104 Cover Page Interactive Data File (embedded within the Inline XBRL Document and include in Exhibit 101) 22