What changed in this filing

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Item 1. Financial Statements

2025-11-14 compared with 2025-08-15 · 136 added, 137 removed, 494 unchanged (36% of the section changed)

1 unchanged sentence

CONDENSED CONSOLIDATED BALANCE SHEETS

June 30, 2025

September 30,

Current assets:

19 unchanged sentences

Total liabilities

Commitments and contingencies

Commitments and contingencies (Note 5)

Shareholders' equity:

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

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

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

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

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

8,527,467 shares issued and 8,379,834 shares outstanding at September 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 June 30, 2025, and 147,633 shares at December 31, 2024

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

Total shareholders' equity

3 unchanged sentences

Three Months Ended

Six Months Ended

June 30, 2025

June 30, 2024

June 30, 2025

June 30, 2024

Nine Months Ended

Revenues, net

6 unchanged sentences

Total operating expenses

Loss from Operations

Income (loss) from Operations

Other income:

15 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE SIX MONTHS ENDED JUNE 30,

FOR THE NINE MONTHS ENDED SEPTEMBER 30,

Cash flows from operating activities:

14 unchanged sentences

Operating lease obligations

Net cash (used in) provided by operating activities

Net cash used in operating activities

Cash flows from investing activities

19 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

FOR THE SIX MONTHS ENDED JUNE 30, 2024

Accumulated Other

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025

Treasury Stock

3 unchanged sentences

Issuance of common stock for accrued bonus

Purchase of treasury stock

Issuance of commons stock for stock options exercises

Share-based compensation expense

1 unchanged sentence

Foreign currency translation adjustment

Issuance of common stock for signing bonus

Share-based compensation expense

Balance, June 30, 2025

Foreign currency translation adjustment

Share-based compensation expense

Balance, September 30, 2025

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

FOR THE SIX MONTHS ENDED JUNE 30, 2025

Accumulated Other

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024

Treasury Stock

3 unchanged sentences

Issuance of common stock for accrued bonus

Issuance of commons stock for stock options exercises

Purchase of treasury stock

Share-based compensation expense

1 unchanged sentence

Foreign currency translation adjustment

Issuance of common stock for signing bonus

Share-based compensation expense

Balance, June 30, 2024

Foreign currency translation adjustment

Share-based compensation expense

Balance, September 30, 2024

See accompanying notes to condensed consolidated financial statements

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025

SEPTEMBER 30, 2025

Organization and Significant Accounting Policies

(“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.

These solutions are developed to provide businesses with streamlined experiences for website creation, online sales, payment collection and shipping all in one platform.

ShipTime Canada Inc.

22 unchanged sentences

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

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.

At September 30, 2025, the Company reported cash and cash equivalents of $ 1,149,384 and working deficit of $ 434,040 and reported cash flows used from operations of $ 79,014 for the nine months ended September 30, 2025.

The Company has reported a net loss of $ 513,965 for the nine months ended September 30, 2025 and has an accumulated deficit of $ 69,387,992 at September 30, 2025.

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.

3 unchanged sentences

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.

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 November 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 June 30, 2025 and December 31, 2024.

dollars using the exchange rates in effect at September 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 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.

during the nine months ended September 30, 2025 and 2024.

At September 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 six months ended June 30, 2025 and 2024.

No impairment charges were recognized during the nine months ended September 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.

14 unchanged sentences

Our risk of loss relates to credit card chargebacks, certain self-insured shipping losses and other miscellaneous charges that we cannot pass through to the shipping company.

During 2025, the Company discontinued its client services which had an immaterial effect on revenue.

Due to the immateriality, the related amounts have not been broken out for financial statement purposes.

Nature of Goods and Services

2 unchanged sentences

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 brewery management software revenues, the Company recognizes subscription revenue on a monthly basis.

Brewery management software subscribers are billed monthly at the first of the month.

For brewery management software revenues, the Company recognized subscription revenue on a monthly basis.

Brewery management software subscribers were billed monthly at the first of the month.

All payments are made via credit card for the following month.

13 unchanged sentences

This method of measurement of progress depicts the pattern of the Company's actual performance under the contracts with the customer.

For arrangements under which the Company provides a subscription for brewery management software, the Company satisfies its performance obligations over the life of the subscription, typically twelve months or less.

For arrangements under which the Company provided a subscription for 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.

9 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 the first and second quarter of 2025 and recorded an allowance for credit losses of $ 22,706 .

The Company has evaluated the accounts receivable for 2025 and recorded an allowance for credit losses of $ 45,622 as of September 30, 2025.

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 June 30, 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 September 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 $ 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.

Accordingly, the Company has only a small balance of accounts receivable, totaling $ 325,027 and $ 193,852 as of September 30, 2025 and December 31, 2024, respectively.

The Company has no customers that made up 10% of the accounts receivable balance at September 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 $ 229,339 in contract assets as of June 30, 2025.

The Company has recorded a balance of $ 286,332 in contract assets as of September 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 $ 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.

Contract liabilities were $ 397,914 and $ 372,795 at September 30, 2025 and December 31, 2024, respectively.

During the nine months ended September 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 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

For the three months ended September 30, 2024, there were approximately 62,000 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 and nine months ended September 30, 2025 and 2024.

September 30,

Net income (loss)

4 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

September 30,

Net income (loss)

8 unchanged sentences

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

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

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

Client services;

7 unchanged sentences

Three Months Ended

Six Months Ended

June 30, 2025

June 30, 2024

Nine Months Ended

Client services

4 unchanged sentences

Three Months Ended

Six Months Ended

June 30, 2025

June 30, 2024

June 30, 2025

June 30, 2024

Nine Months Ended

Client services

10 unchanged sentences

These reclassifications had no effect on the reported results of operations.

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

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.

The Company adopted this standard on January 1, 2025, without material impact on the financial condition or results of operations.

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.

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

In December 2023, the FASB issued Accounting Standards Update No.

2023-09, Income Taxes (Topic 740):

Improvements to Income Tax Disclosures .

The amendments require enhanced disclosure of the effective tax rate reconciliation (including specified categories and tabular presentation of reconciling items) and expanded disclosure of income taxes paid, disaggregated by jurisdiction.

The transition and open-effective-date paragraph (ASC 740-10-65-9) provides that the guidance is effective for public business entities for annual periods beginning after December 15, 2024, and for entities other than public business entities for annual periods beginning after December 15, 2025.

Early adoption is permitted.

The amendments are required to be applied on a prospective basis;

retrospective application is permitted.

The Company adopted this standard on January 1, 2025, without a material impact on its consolidated financial statements or related disclosures.

In November 2024, the FASB issued guidance that requires the disclosure of additional information related to certain costs and expenses, including amounts of inventory purchases, employee compensation, and depreciation and amortization included in each income statement line item.

The guidance also requires disclosure of the total amount of selling expenses and the Company’s definition of selling expenses.

The guidance is effective for the Company for annual periods beginning in fiscal year 2029.

The Company is currently assessing the impacts of the new guidance on its financial statement disclosures.

Notes Receivable

16 unchanged sentences

On July 29, 2024, the Board of Directors approved an extension with Embolx which was effective as of January 31, 2025.

The Forbearance and Loan Modification Agreement with Embolx extends the note receivable of $ 5,967,100 until September 30, 2025 and carries a 25 % interest rate.

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 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 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.

The Company entered into a Forbearance and Loan Modification Agreement with Embolx which extended the note receivable of $ 5,967,100 until September 30, 2025 and carried a 25 % interest rate.

On September 30, 2025 the Company amended the Forbearance Agreement to expire on August 31, 2026.

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

For the nine months ended September 30, 2025, the Company has elected to defer $ 1,923,840 of additional income related to the interest earned on the Convertible Note.

For the nine months ending ending September 30, 2024, the Company recorded $ 141,780 in interest income related to the interest due on the note receivable for the first quarter of 2024.

The note was in default effective June 19, 2024, at which time the Company recorded $ 1,048,402 of other income related to the 25% Original Issue Discount on the note receivable.

The Company entered into a $ 50,000 short term note with 5String Solutions LLC on April 4, 2024.

4 unchanged sentences

On April 30, 2027 the Company has the option to convert the balance of the $ 400,000 note receivable into 55 % ownership of 5String Solutions.

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.

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.

In the event that the Company elects to convert the note, 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.

On July 1, 2025 and October 10, 2025, the Company made an additional investment of $ 75,000 per occurrence and in accordance with the original terms of the July 3, 2024 amendment.

Interest of $ 24,435 has been recorded based on the outstanding balance of the $ 325,000 note for the nine months ended September 30, 2025 compared to $ 13,418 of interest income for the nine months ended September 30, 2024.

Accrued Expenses

Accrued expenses are comprised of the following:

June 30, 2025

September 30,

Payroll and related costs

5 unchanged sentences

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

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

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

Relationships

5 unchanged sentences

Accumulated amortization

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

Amortization expense of intangible assets for the nine months ended September 30, 2025, and 2024 was $ 214,924 and $ 220,939 , respectively.

Commitments and Contingencies

6 unchanged sentences

Pratt alleges in a court in Canada that the Company terminated him and that the Company owes him a severance payment.

The trial for the Canadian dispute is set for May 2026.

Around the same time that Mr.

25 unchanged sentences

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

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

As of September 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 June 30, 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.

17 unchanged sentences

$ 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.

The Company recorded $ 86,250 of share-based compensation expense for the nine month period ended September 30, 2025, in connection with these additional vesting of these 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 second quarter of 2025.

Share-based Incentive Plans

7 unchanged sentences

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 .

Option compensation for the period ended September 30, 2025 related to the issuance of these shares is $ 126,500 .

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 15, 2025, the Company issued options to purchase 16,232 shares of common stock to one employee.

The options have an exercise price of $ 2.70 and are vested immediately.

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

The weighted-average assumptions used consider an expected dividend yield of 0 %, a risk-free interest rate of 4.05 %, an expected life (in years) of 5.84 , and expected volatility of 93.55 %, resulting in a weighed average fair value of $ 2.08 per share.

Share-based compensation for these options was recorded at $ 33,763 during the nine months ended September 30, 2025.

For the three-month and nine-month period ended September 30, 2025, the Company recorded $ 35,030 and $ 164,086 , respectively, of share-based compensation expense related to the vesting of applicable options granted in 2025 and prior years.

For the three and nine-month periods ended September 30, 2024, the Company recorded $ 3,266 and $ 44,928 , 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.

3 unchanged sentences

The components of lease expense were as follows:

June 30, 2025

June 30, 2024

September 30,

Operating lease cost

Supplemental balance sheet information related to leases was as follows:

June 30, 2025

December 31, 2024

September 30,

Operating leases:

3 unchanged sentences

Total operating lease liabilities

June 30, 2025

December 31, 2024

September 30,

Weighted Average Remaining Lease Term

2 unchanged sentences

Operating lease

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

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

Years ending December 31,

4 unchanged sentences

Long term portion

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.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

37 unchanged sentences

Results of Operations

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.

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

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

Three Months Ended September 30,

Client services

2 unchanged sentences

Total net revenues

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.

Revenues increased 24% in the third 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 sales initiatives and pricing strategies have contributed to the shipping volume increase of 24% in third quarter of 2025.

Client services revenues, which include brewery management software and shipping calculator services decreased $2,495 or 100% to $0 in the third quarter of 2025 compared to $2,495 in 2024.

The decrease in revenues is due to the retirement of the brewery management software application and the online shipping calculation services.

The Company announced the closing of this BeerRun Software in June of 2025.

Shipping coordination and label generation services revenues increased $1,074,301 or 24% to $5,505,238 in the third quarter of 2025 compared to $4,430,937 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.

The Company has added several new carriers to the platform and has increased the marketing and awareness as an alternate to Canada Post.

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 $33,167 an increase of $14,407 or 77% compared to $18,760 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.

These include payments and web hosting services.

The Company has recognized revenues of $3,391, a decrease of $9,087 or 73% compared to $12,478 for the same period in 2024.

The decrease is attributed to the loss of a client for the PaidPayments portion of this segment of the business in 2025.

Gross profit increased $193,691 in the third quarter of 2025 to $1,277,525 compared to $1,083,834 in 2024.

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

Operating Expenses

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.

Total operating expenses in the third quarter of 2025 were $1,252,279 compared to $1,233,614 in the third quarter of 2024, an increase of $18,665 or 2%.

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

Other Income/Expense, net

Net other income in 2025 was $13,319 compared to $17,221 in 2024, a decrease of $3,902 or 23%.

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.

The third quarter 2025 other income was made up of gains on an interest-bearing savings account along with interest earned on notes receivable whereas the third quarter of 2024 contains year-to-date interest on the 5String note receivable.

Net Income (Loss )

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 Company recorded a net income in the third quarter of 2025 of $32,156 compared to a net loss of ($133,679) for the same period in 2024.

The net income per share for the third quarter of 2025 was $0.00 and the net loss per share for 2024 was ($0.02).

Comparison of the nine months ended September 30, 2025 and 2024.

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

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

Six months Ended June 30,

Nine Months Ended September 30,

Client services

3 unchanged sentences

Revenues increased 16% 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.

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 22% in the first three quarters of 2025.

Client services revenues, which include brewery management software and shipping calculator services decreased $11,157 or 74% to $3,863 in the first three quarters of 2025 compared to $15,020 for the same period in 2024.

The decrease in revenues is primarily due to the retirement of Auctioninc services and the closing of this BeerRun Software as of June of 2025.

Shipping coordination and label generation services revenues increased $2,130,386 or 16% to $15,287,670 in the first three quarters of 2025 compared to $13,157,284 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.

These include payments and web hosting services.

The Company has recognized revenues of $22,911 a decrease of $14,743 or 39% compared to $37,654 for the same period in 2024.

The decrease is related to the loss of a client in the PaidPayments segment of the business in 2025.

Gross profit increased $289,494 in the first three quarters of 2025 to $3,499,254 compared to $3,209,760 in 2024 an increase of 9%.

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

Operating Expenses

Total operating expenses in 2025 were $4,040,451 compared to $3,472,894 for the same period of 2024, an increase of $567,557 or 16%.

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

The increase is related to $579,136 in stock-based compensation expense recorded in 2025.

Other Income/Expense, net

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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.

The Company recorded a net loss in the first three quarters of 2025 of $513,965 compared to a net income of $936,335 for the same period in 2024.

The net loss per share for the third quarter of 2025 was ($0.06) and the net income for 2024 was $0.12 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 six months ended June 30, 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 nine months ended September 30, 2025 and 2024 is as follows:

Net income (loss)

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Working Capital and Liquidity

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 had cash and cash equivalents of $1,149,384 at September 30, 2025, compared to $1,284,965 at December 31, 2024.

The Company had a net working capital deficit of $434,040 at September 30, 2025, a decrease of $195,427 compared to the deficit of $629,467 at December 31, 2024.

The decrease in net working capital is primarily attributable to the cash on hand and the accounts receivable balance at the end of the third 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.

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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-Q

Item 1. Financial Statements