What changed in this filing

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Item 1. Financial Statements

2025-08-15 compared with 2025-05-15 · 154 added, 79 removed, 477 unchanged (33% of the section changed)

1 unchanged sentence

CONDENSED CONSOLIDATED BALANCE SHEETS

March 31, 2025

December 31, 2024

June 30, 2025

Current assets:

22 unchanged sentences

Series A Preferred stock, $ 0.001 par value, 5,000,000 shares authorized;

no shares issued and outstanding at March 31, 2025, and December 31, 2024

no shares issued and outstanding at June 30, 2025, and December 31, 2024

Common stock, $ 0.001 par value, 25,000,000 shares authorized;

8,277,467 shares issued and 8,129,834 shares outstanding at March 31, 2025, and 8,213,533 shares issued and 8,065,900 shares outstanding at December 31, 2024

8,527,467 shares issued and 8,379,834 shares outstanding at June 30, 2025, and 8,213,533 shares issued and 8,065,900 shares outstanding at December 31, 2024

Accrued common stock bonus

2 unchanged sentences

Accumulated deficit

Common stock in treasury, at cost, 147,633 shares at March 31, 2025, and 147,633 shares at December 31, 2024

Common stock in treasury, at cost, 147,633 shares at June 30, 2025, and 147,633 shares at December 31, 2024

Total shareholders' equity

2 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

Three Months Ended

Six Months Ended

June 30, 2025

June 30, 2024

June 30, 2025

June 30, 2024

Revenues, net

24 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE THREE MONTHS ENDED MARCH 31,

FOR THE SIX MONTHS ENDED JUNE 30,

Cash flows from operating activities:

14 unchanged sentences

Operating lease obligations

Net cash used in operating activities

Net cash (used in) provided by operating activities

Cash flows from investing activities

16 unchanged sentences

Issuance of common shares in settlement of accrued common stock bonus

Operating lease liabilities from obtaining lease right-of-use assets

See accompanying notes to condensed consolidated financial statements

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

FOR THE THREE MONTHS ENDED MARCH 31, 2024

FOR THE SIX MONTHS ENDED JUNE 30, 2024

Accumulated Other

Treasury Stock

6 unchanged sentences

Balance, March 31, 2024

Foreign currency translation adjustment

Share-based compensation expense

Balance, June 30, 2024

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

FOR THE THREE MONTHS ENDED MARCH 31, 2025

FOR THE SIX MONTHS ENDED JUNE 30, 2025

Accumulated Other

Treasury Stock

6 unchanged sentences

Balance, March 31, 2025

Foreign currency translation adjustment

Issuance of common stock for signing bonus

Share-based compensation expense

Balance, June 30, 2025

See accompanying notes to condensed consolidated financial statements

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025

June 30, 2025

Organization and Significant Accounting Policies

25 unchanged sentences

The Company has continued to incur losses, although it has taken significant steps to reduce them.

At March 31, 2025, the Company reported cash and cash equivalents of $ 751,099 and working deficit of $ 761,825 and reported cash flows used from operations of $ 477,568 for the three months ended March 31, 2025.

The Company has reported a net loss of $ 148,773 for the three months ended March 31, 2025 and has an accumulated deficit of $ 69,022,799 at March 31, 2025.

At June 30, 2025, the Company reported cash and cash equivalents of $ 1,068,119 and working deficit of $ 577,380 and reported cash flows used from operations of $ 251,875 for the six months ended June 30, 2025.

The Company has reported a net loss of $ 546,122 for the six months ended June 30, 2025 and has an accumulated deficit of $ 69,420,148 at June 30, 2025.

These factors raise substantial doubt about the Company’s ability to continue as a going concern.

3 unchanged sentences

Management continues to explore opportunities and has organized additional resources to grow the Paid platform.

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 may seek alternative sources of capital to support the growth of future operations.

Management feels that the repayments of the notes receivable will alleviate the concern however the repayment date is uncertain.

Additionally, the cost of doing business can be significantly reduced in hopes of eliminating the net loss and providing positive cash flow from 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 2026 and will have a positive impact on the Company for the foreseeable future.

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 may 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 August 2026 and will have a positive impact on the Company for the foreseeable future.

Principles of Consolidation

5 unchanged sentences

Foreign currency denominated assets and liabilities are translated into U.S.

dollars using the exchange rates in effect at March 31, 2025 and December 31, 2024.

dollars using the exchange rates in effect at June 30, 2025 and December 31, 2024.

Results of operations and cash flows are translated using the average exchange rates throughout the period.

3 unchanged sentences

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, 2025 and 2024.

At March 31, 2025, the Company maintained 100 % of its property and equipment, net of accumulated depreciation, in Canada.

during the six months ended June 30, 2025 and 2024.

At June 30, 2025, the Company maintained 100 % of its property and equipment, net of accumulated depreciation, in Canada.

Right of Use Assets

6 unchanged sentences

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 impairment charges were recognized during the three months ended March 31, 2025 and 2024.

No impairment charges were recognized during the six months ended June 30, 2025 and 2024.

There can be no assurance, however, that market conditions will not change or demand for the Company’s services will continue, which could result in impairment of long-lived assets in the future.

47 unchanged sentences

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 evaluated the accounts receivable for first quarter and recorded an allowance for credit losses of $ 22,286 .

The Company has evaluated the accounts receivable for the first and second quarter of 2025 and recorded an allowance for credit losses of $ 22,706 .

The Company has two notes receivable and is a senior secure lender with an absolute obligation for one of the notes.

The primary note was evaluated for credit losses as of March 31, 2025 by considering the contractual obligation, the valuation of the assets and the senior position of the repayment.

The primary note was evaluated for credit losses as of June 30, 2025 by considering the contractual obligation, the valuation of the assets and the senior position of the repayment.

Variable Consideration

8 unchanged sentences

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 $ 287,036 and $ 193,852 as of March 31, 2025 and December 31, 2024, respectively.

The Company has one customer that made up 10% of the accounts receivable balance at March 31, 2025 and one customer that made up 10% of the accounts receivable balance as of December 31, 2024.

Accordingly, the Company has only a small balance of accounts receivable, totaling $ 310,277 and $ 193,852 as of June 30, 2025 and December 31, 2024, respectively.

The Company has no customers that made up 10% of the accounts receivable balance at June 30, 2025 and one customer that made up 10% of the accounts receivable balance as of December 31, 2024.

Generally, the Company does not have material amounts of contract assets since revenue is recognized as control of goods is transferred or as services are performed.

The Company has recorded a balance of $ 322,775 in contract assets as of March 31, 2025.

The Company has recorded a balance of $ 229,339 in contract assets as of June 30, 2025.

Contract Liabilities (Deferred Revenue)

Contract liabilities are recorded when cash payments are received in advance of the Company’s performance.

Contract liabilities were $ 318,399 and $ 372,795 at March 31, 2025 and December 31, 2024, respectively.

During the three months ended March 31, 2025, the Company recognized revenues of $ 372,795 related to contract liabilities outstanding at the beginning of the period.

Contract liabilities were $ 326,124 and $ 372,795 at June 30, 2025 and December 31, 2024, respectively.

During the six months ended June 30, 2025, the Company recognized revenues of $ 372,795 related to contract liabilities outstanding at the beginning of the period.

Income (Loss) Per Common Share

2 unchanged sentences

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, 2025, 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, 2025 and 2024.

March 31, 2025

March 31, 2024

For the six months ended June 30, 2024, there were approximately 105,000 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 June 30, 2025 and 2024.

June 30, 2025

June 30, 2024

Net income (loss)

Basic weighted-average shares outstanding

3 unchanged sentences

Diluted income (loss) per share

The following is a reconciliation of the numerators and denominators of the basic and diluted income (loss) per common share computations for the six months ended June 30, 2025 and 2024.

Six Months Ended

June 30, 2025

Six Months Ended

June 30, 2024

Net income (loss)

Basic weighted-average shares outstanding

Basic income (loss) per share

Effect of dilutive securities

Diluted weighted-average shares outstanding

Diluted income (loss) per share

Segment Reporting

2 unchanged sentences

The Company’s four reportable segments are managed separately based on fundamental differences in their operations.

At March 31, 2025, the Company operated in the following four reportable segments:

At June 30, 2025, the Company operated in the following four reportable segments:

Client services;

7 unchanged sentences

Three Months Ended

March 31, 2025

March 31, 2024

Six Months Ended

June 30, 2025

June 30, 2024

Client services

2 unchanged sentences

Total revenues

The following table compares total loss from operations for the periods indicated.

The following table compares total income (loss) from operations for the periods indicated.

Three Months Ended

March 31, 2025

March 31, 2024

Six Months Ended

June 30, 2025

June 30, 2024

June 30, 2025

June 30, 2024

Client services

2 unchanged sentences

Corporate operations

Total loss from operations

Total income (loss) from operations

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 or disclosure in the notes thereto, other than as disclosed herein.

On July 1, 2025, the Company amended its Note with 5String Solutions to include new payment terms on the additional $ 150,000 investment.

The terms of the original note include a 12 % annual interest rate and is due on April 30, 2027.

The Company has agreed to a payment schedule for the additional investment of $ 75,000 paid on July 1, 2025, and the remaining $ 75,000 is due on or before October 7, 2025.

Reclassification

1 unchanged sentence

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, 2025, to consolidate revenue reporting for smaller segments of the Company.

An adjustment has been made to the segment reporting for the period ended June 30, 2024, to consolidate revenue reporting for smaller segments of the Company.

Recent Accounting Pronouncements

8 unchanged sentences

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.

The adoption of this standard on January 1, 2025 did not have a material impact on the consolidated financial statements and related disclosures.

Notes Receivable

18 unchanged sentences

Options to extend the note receivable may be considered as return on the note payable is favorable and Embolx may seek additional time to consummate a financial transaction.

Although the note is considered a short-term note, the full amount of the note receivable is not expected to be collected by March 31, 2026, and thus has been reclassed as long-term.

Although the note is considered a short-term note, the full amount of the note receivable is not expected to be collected by June 30, 2026, and thus has been reclassed as long-term.

It is possible a payment will be received when the note comes due for the first time in September 2025, however, determining the approximate amount would be very difficult.

For the three months ended March 31, 2025, the Company has elected to defer $ 936,271 of additional income related to the interest earned on the Convertible Note compared to $ 141,780 in interest income and $ 201,209 of other income recorded as of March 31, 2024.

For the six months ended June 30, 2025, the Company has elected to defer $ 1,554,270 of additional income related to the interest earned on the Convertible Note compared to $ 141,780 in interest income and $ 1,048,402 of other income recorded as of June 30, 2024.

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 2025 or 2026.

6 unchanged sentences

In the event that the Company elects to convert the noted they subsequently have the option to purchase the remaining 45 % ownership of 5String Solutions at a rate of 5-times EBITDA reported on December 31, 2026.

Interest of $ 7,315 has been recorded based on the outstanding balance of the $ 250,000 note for the three-month period ending March 31, 2025.

On July 1, 2025 the Company made an additional investment of $ 75,000 in accordance with the original terms of the July 3, 2024 amendment.

Interest of $ 14,712 has been recorded based on the outstanding balance of the $ 250,000 note for the six-month period ending June 30, 2025.

Accrued Expenses

Accrued expenses are comprised of the following:

June 30, 2025

Payroll and related costs

5 unchanged sentences

In addition, the Company has various other intangibles from past business combinations.

At March 31, 2025, intangible assets consisted of the following:

At June 30, 2025, intangible assets consisted of the following:

Relationships

5 unchanged sentences

Accumulated amortization

Amortization expense of intangible assets for the three months ended March 31, 2025, and 2024 was $ 69,779 and $ 74,285 , respectively.

Amortization expense of intangible assets for the six months ended June 30, 2025, and 2024 was $ 142,189 and $ 147,496 , respectively.

Commitments and Contingencies

16 unchanged sentences

The trial on the remaining claim was held before the Delaware court on December 5-6, 2024.

Post-trial briefing in the Delaware action was completed on March 21, 2025, and the Delaware court is scheduled to hear post-trial arguments at a hearing on June 10, 2025.

Post-trial briefing in the Delaware action was completed on March 21, 2025, and the Delaware court heard post-trial arguments at a hearing on June 10, 2025, the results of the briefing have not been released.

The Company has not recorded a reserve as the outcome of these matters cannot be determined.

14 unchanged sentences

If purchased, redeemed, or otherwise acquired (other than conversion), the preferred stock may be reissued.

As of March 31, 2025, and December 31, 2024, there are no outstanding shares of Series A Preferred Stock.

As of June 30, 2025, and December 31, 2024, there are no outstanding shares of Series A Preferred Stock.

In February 2020, ShipTime Canada amended its rights to exchange one share of ShipTime Canada stock from 45 PAID common shares and 311 PAID preferred shares to 356 PAID common shares.

3 unchanged sentences

The Company has had the option to force an exchange since December 2021.

In total, the Company has reserved for future issuance of 2,106,880 shares of PAID common stock with respect to the remaining 5,918 exchangeable shares to be issued as a result of the ShipTime acquisition which are considered issued and outstanding as of March 31, 2025 for financial reporting purposes.

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.

15 unchanged sentences

This bonus was recorded in accrued common stock bonus in shareholders’ equity as of December 31, 2024.

On May 15, 2025, the Company’s Board of Directors authorized the issuance of 250,000 bonus shares of PAID common stock to the CEO/CFO as a renewal bonus valued at $ 747,500 based upon the $ 2.99 closing price of the Company’s stock on May 15, 2025.

$ 373,750 of share-based compensation expense was recognized immediately as 125,000 of the bonus shares were immediately vested.

The remaining $ 373,750 of share-based compensation expense is to be recognized ratably during 2025 and 2026 as 125,000 of the bonus shares are subject to repurchase if the CEO/CFO were to terminate employment during the period ended January 1, 2027.

The Company recorded $ 467,188 , of share-based compensation expense for the six month period ended June 30, 2025, in connection with these additional shares.

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 .

There were no repurchase arrangements made in the first quarter of 2025.

There were no repurchase arrangements made in the second quarter of 2025.

Share-based Incentive Plans

4 unchanged sentences

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 the grant date.

For the three-month period ended March 31, 2025 and 2024, the Company recorded $ 1,267 and $ 38,984 , respectively, of share-based compensation expense related to the vesting of applicable options granted in 2024 and prior years.

On May 15, 2025, the Board of Directors voted to approve the issuance of options to purchase 55,000 shares of common stock to three board members.

The value of each option granted is estimated using a Black-Scholes option pricing model.

The weighted-average assumptions used consider an expected dividend yield of 0 %, a risk-free interest rate of 4.07 %, an expected life (in years) of 5.84 , and expected volatility of 93.04 %, resulting in a weighed average fair value of $ 2.30 per share.

Option compensation for the period ended June 30, 2025, related to the issuance of these shares is $ 42,197 .

The options have an exercise price of $ 2.99 per share and vest immediately.

For the three-month and six-month period ended June 30, 2025, the Company recorded $ 510,622 and $ 511,899 , respectively, of share-based compensation expense related to the vesting of applicable options granted in 2025 and prior years.

For the three and six-month periods ended June 30, 2024, the Company recorded $ 2,678 and $ 41,662 , respectively, of share-based compensation expense related to the vesting of applicable options granted in 2024 and prior years.

On July 2, 2024, the Company entered into an operating lease for our corporate office located at 700 Dorval Drive in Oakville Ontario.

1 unchanged sentence

Future renewal options that are not likely to be executed as of the balance sheet date and are excluded from right-of-use assets and related lease liabilities.

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.

We report operating lease assets, as well as operating lease current and non-current 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:

March 31, 2025

March 31, 2024

June 30, 2025

June 30, 2024

Operating lease cost

Supplemental balance sheet information related to leases was as follows:

March 31, 2025

June 30, 2025

December 31, 2024

4 unchanged sentences

Total operating lease liabilities

March 31, 2025

June 30, 2025

December 31, 2024

3 unchanged sentences

Operating lease

A summary of future minimum payments under non-cancellable operating lease commitment as of March 31, 2025 is as follows:

A summary of future minimum payments under non-cancellable operating lease commitment as of June 30, 2025 is as follows:

Years ending December 31,

43 unchanged sentences

Results of Operations

Comparison of the three months ended March 31, 2025 and 2024.

The following discussion compares the Company's results of operations for the three months ended March 31, 2025 with those for the three months ending March 31, 2024.

Comparison of the three months ended June 30, 2025 and 2024.

The following discussion compares the Company's results of operations for the three months ended June 30, 2025 with those for the three months ending June 30, 2024.

The Company's condensed consolidated financial statements and notes thereto included elsewhere in this quarterly report contain detailed information that should be referred to in conjunction with the following discussion.

The following table compares total net revenue for the periods indicated.

Three months Ended September 30,

Three months Ended June 30,

Client services

2 unchanged sentences

Total net revenues

Revenues increased 5% in the first quarter as a result of the shipping coordination and label generation segment of the business.

Marketing efforts, pricing strategies and additional personnel have contributed to the shipping volume increase of 5% in 2025.

Client services revenues which include brewery management software and shipping calculator services decreased $5,226 or 72% to $2,034 in the first quarter of 2025 compared to $7,260 in 2024.

The decrease in revenues is primarily due to the cancellation of several brewery management software clients and the limited marketing of this segment of the business.

Shipping coordination and label generation services revenues increased $206,294 or 5% to $4,346,139 in the first quarter of 2025 compared to $4,139,845 in 2024.

The increase is attributable to annual carrier pricing increases and the additional marketing efforts in the first quarter of 2025.

Revenues increased 18% in the second quarter as a result of the shipping coordination and label generation segment of the business.

Shifts in shipping volume from Canada Post to alternate carriers along with strategic pricing strategies have contributed to the shipping volume increase of 18% in second quarter of 2025.

Client services revenues which include brewery management software and shipping calculator services decreased $3,436 or 65% to $1,829 in the second quarter of 2025 compared to $5,266 in 2024.

The decrease in revenues is primarily due to the cancellation of several brewery management software clients and the announcement of the closing of this BeerRun Software in June of 2025.

Shipping coordination and label generation services revenues increased $813,756 or 18% to $5,393,029 in the second quarter of 2025 compared to $4,579,273 in 2024.

The increase is primarily due to the uncertainty of the Canada Post delivery services due to pending contract negotiations causing a significant shift to other carriers available to Canadian small businesses.

eCommerce services are available to small businesses that process online payment and shipping transactions.

1 unchanged sentence

The Company has recognized revenues of $33,167 an increase of $14,407 or 77% compared to $18,760 for the same period in 2024.

The Company has success with the PaidShipping portion of this segment of the business in 2025.

Gross profit increased $1,718 in the first quarter of 2025 to $1,020,076 compared to $1,018,358 in 2024.

Gross margin decreased 1% to 23% in the first quarter of 2025 compared to 24% for the same period in 2024.

The Company has success marketing the PaidShipping portion of this segment of the business in 2025.

Gross profit increased $94,084 in the second quarter of 2025 to $1,201,653 compared to $1,107,569 in 2024.

Gross margin decreased 2% to 22% in the second quarter of 2025 compared to 24% for the same period in 2024.

Operating Expenses

Total operating expenses in the first quarter 2025 were $1,179,205 compared to $1,056,185 in the first quarter of 2024, an increase of $123,020 or 12%.

The increase is related to the additional marketing expenses for the first quarter of 2025.

Total operating expenses in the second quarter of 2025 were $1,608,965 compared to $1,183,095 in the second quarter of 2024, an increase of $425,870 or 36%.

The increase is related to the stock-based compensation expense for the second quarter of 2025.

Other Income/Expense, net

Net other income in 2025 was $10,422 compared to $848,674 in 2024, a decrease of $838,252 or 99%.

The first quarter 2025 other income made up of gains on an interest-bearing savings account along with interest earned on notes receivable whereas the first quarter of 2024 contains interest and additional discounts related to the note receivable.

The second quarter 2025 other income made up of gains on an interest-bearing savings account along with interest earned on notes receivable whereas the second quarter of 2024 contains interest and additional discounts related to the note receivable.

The Company is currently deferring the interest and penalties related to the note receivable.

Net Income (Loss )

The Company recorded a net loss in the first quarter of 2025 of $148,733 compared to a net income of $299,562 for the same period in 2024.

The net loss per share for the first quarter of 2025 was ($0.02) and the net income for 2024 was $0.04 per share.

The Company recorded a net loss in the second quarter of 2025 of $397,349 compared to a net income of $770,452 for the same period in 2024.

The net loss per share for the second quarter of 2025 was ($0.05) and the net income for 2024 was $0.10 per share.

Comparison of the six months ended June 30, 2025 and 2024.

The following discussion compares the Company's results of operations for the six months ended June 30, 2025 with those for the six months ending June 30, 2024.

The following table compares total net revenue for the periods indicated.

Six months Ended June 30,

Client services

Shipping coordination and label generation services

eCommerce services

Total net revenues

Revenues increased 12% in 2025 as a result of the shipping coordination and label generation segment of the business.

Ongoing marketing efforts and strategic pricing along with shifts s in shipping volume from Canada Post to alternate carriers increased the overall transactional volume by 21% in the first two quarters of 2025.

Client services revenues, which include brewery management software and shipping calculator services decreased $8,662 or 69% to $3,863 in the first two quarters of 2025 compared to $12,525 for the same period in 2024.

The decrease in revenues is primarily due to the cancellation of several brewery management software clients and the announcement of the closing of this BeerRun Software as of June of 2025.

Shipping coordination and label generation services revenues increased $1,020,052 or 12% to $9,739,170 in the first two quarters of 2025 compared to $8,719,118 for the same period in 2024.

eCommerce services are available to small businesses that process online payment and shipping transactions.

These include shipping, payments and web hosting services.

The Company has recognized revenues of $62,784 an increase of $30,379 or 94% compared to $32,405 for the same period in 2024.

The Company has success marketing the PaidShipping portion of this segment of the business in 2025.

Gross profit increased $95,803 in the first two quarters of 2025 to $2,221,730 compared to $2,125,927 in 2024 an increase of 5%.

Gross margin decreased 1% to 23% in the first two quarters of 2025 compared to 24% for the same period in 2024.

Operating Expenses

Total operating expenses in 2025 were $2,788,174 compared to $2,239,404 for the same period of 2024, an increase of $548,770 or 25%.

The increase is related to $511,899 in stock-based compensation expense for the second quarter of 2025.

Other Income/Expense, net

Net other income in 2025 was $20,778 compared to $1,191,663 in 2024, a decrease of $1,170,885 or 98%.

The other income recognized in 2025 is made up of gains on an interest-bearing savings account along with interest earned on the 5String note receivable whereas the other income in 2024 contains interest and additional discounts related to a note receivable.

The Company is currently deferring the interest and penalties related to the Embolx note receivable.

Net Income (Loss )

The Company recorded a net loss in the first two quarters of 2025 of $546,122 compared to a net income of $1,069,890 for the same period in 2024.

The net loss per share for the second quarter of 2025 was ($0.07) and the net income for 2024 was $0.13 per share.

Cash Flows from Operating Activities

A summarized reconciliation of the Company's net income (loss) to cash and cash equivalents used in operating activities for the three months ended March 31, 2025 and 2024 is as follows:

A summarized reconciliation of the Company's net income (loss) to cash and cash equivalents used in operating activities for the six months ended June 30, 2025 and 2024 is as follows:

Net income (loss)

8 unchanged sentences

Working Capital and Liquidity

The Company had cash and cash equivalents of $751,099 at March 31, 2025, compared to $1,284,965 at December 31, 2024.

The Company had net working deficit of $761,825 at March 31, 2025, a decrease of $132,358 compared to the deficit of $629,467 at December 31, 2024.

The decrease in net working capital is primarily attributable to the accounts receivable balance at the end of the first quarter in 2025.

The Company had cash and cash equivalents of $1,068,119 at June 30, 2025, compared to $1,284,965 at December 31, 2024.

The Company had net working deficit of $577,380 at June 30, 2025, a decrease of $52,087 compared to the deficit of $629,467 at December 31, 2024.

The decrease in net working capital is primarily attributable to the accounts receivable balance at the end of the second quarter in 2025.

The Company may need an infusion of additional capital to fund anticipated operating costs over the next 12 months, however, management believes that the Company has adequate cash resources to fund operations.

4 unchanged sentences

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-Q

Item 1. Financial Statements