PAID, Inc. Files 8-K for Material Definitive Agreement
Ticker: PAYD · Form: 8-K · Filed: Jul 12, 2024 · CIK: 1017655
| Field | Detail |
|---|---|
| Company | Paid Inc (PAYD) |
| Form Type | 8-K |
| Filed Date | Jul 12, 2024 |
| Risk Level | medium |
| Pages | 2 |
| Reading Time | 3 min |
| Key Dollar Amounts | $400,000, $250,000, $50,000 |
| Sentiment | neutral |
Sentiment: neutral
Topics: material-definitive-agreement, filing
TL;DR
PAID, Inc. just signed a big deal, filing an 8-K with the SEC.
AI Summary
On July 5, 2024, PAID, Inc. entered into a material definitive agreement. The filing also includes financial statements and exhibits related to this agreement. The company, formerly known as Sales Online Direct Inc., is incorporated in Delaware and headquartered in Marlborough, Massachusetts.
Why It Matters
This filing indicates a significant new agreement for PAID, Inc., which could impact its business operations and financial performance.
Risk Assessment
Risk Level: medium — Material definitive agreements can introduce new risks or opportunities, the specifics of which are not detailed in this initial filing.
Key Players & Entities
- PAID, Inc. (company) — Registrant
- July 5, 2024 (date) — Date of earliest event reported
- Sales Online Direct Inc. (company) — Former company name
- Delaware (jurisdiction) — State of incorporation
- Marlborough, Massachusetts (location) — Company address
FAQ
What is the nature of the material definitive agreement entered into by PAID, Inc. on July 5, 2024?
The filing does not specify the details of the material definitive agreement, only that one was entered into on July 5, 2024.
What are the previous names of PAID, Inc. mentioned in the filing?
PAID, Inc. was formerly known as Sales Online Direct Inc., Securities Resolution Advisors Inc., and Rose International Ltd.
Where is PAID, Inc. headquartered?
PAID, Inc. is headquartered in Marlborough, Massachusetts.
What is the SEC file number for PAID, Inc.?
The SEC file number for PAID, Inc. is 000-28720.
What is the IRS Employer Identification Number for PAID, Inc.?
The IRS Employer Identification Number for PAID, Inc. is 73-1479833.
Filing Stats: 739 words · 3 min read · ~2 pages · Grade level 11.8 · Accepted 2024-07-12 16:19:22
Key Financial Figures
- $400,000 — Kansas limited liability company, up to $400,000 through December 31, 2025, not to excee
- $250,000 — hrough December 31, 2025, not to exceed $250,000 in 2024. On July 5, 2024, the Company f
- $50,000 — y may agree to loan additional funds in $50,000 installments prior to the required conv
Filing Documents
- payd20240711_8k.htm (8-K) — 28KB
- ex_697767.htm (EX-10.1) — 68KB
- ex_697768.htm (EX-10.2) — 170KB
- 0001437749-24-022663.txt ( ) — 438KB
- payd-20240705.xsd (EX-101.SCH) — 3KB
- payd-20240705_def.xml (EX-101.DEF) — 10KB
- payd-20240705_lab.xml (EX-101.LAB) — 14KB
- payd-20240705_pre.xml (EX-101.PRE) — 10KB
- payd20240711_8k_htm.xml (XML) — 3KB
01. Entry Into a Material Definitive Agreement
Item 1.01. Entry Into a Material Definitive Agreement Effective July 5, 2024, the Company entered into a financing arrangement to loan 5String Solutions, LLC, a Kansas limited liability company, up to $400,000 through December 31, 2025, not to exceed $250,000 in 2024. On July 5, 2024, the Company funded the 2024 installment of $250,000. The loan is secured by all assets of 5String Solutions. The Company is in a first lien position, together with subordinated noteholders in the event of a default, including a default due to insolvency. The loan carries a 12% interest rate and matures no later than April 30, 2027. The Company is obligated, absent default, to convert the loan into 55% of outstanding membership interest units of 5String Solutions, and to purchase the remaining 45% of 5String Solutions units based on a valuation formula related to a five times valuation multiple less indebtedness, calculated at the time of the purchase. The Company may agree to loan additional funds in $50,000 installments prior to the required conversion for an additional 7% of the units of 5String Solutions. The projected purchase of the remaining unconverted units is expected to occur no later than April 30, 2027. 5String Solutions, LLC is a Kansas limited liability company that has assembled a coalition of carriers with capabilities to deliver local LTL, local parcel, hot shot, residential and white glove services, fulfillment, reverse logistics, pool distribution, zone-skipping. 5String Solutions advocates for last mile connectivity and helps companies electronically connect to existing networks.
01. Financial Statements and Exhibits
Item 9.01. Financial Statements and Exhibits. (d) Exhibits 10.1 $400,000 Convertible Promissory Note dated July 3, 2024 (executed July 5, 2024) by 5 String Solutions, LLC for the benefit of Paid, Inc. 10.2 Security Agreement dated July 3, 2024 by and among 5String Solutions, LLC (as debtor), Paid, Inc. (as secured party and collateral agent) and certain named subordinated creditors of debtor (as additional secured parties) 104 Cover Page Interactive Data File (embedded within the Inline XBRL document) SIGNATURE 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 hereunto duly authorized. Date: July 10, 2024 By: /s/ W. Austin Lewis, IV W. Austin Lewis, IV, CEO, CFO Exhibit Index Exhibit Number Description 10.1 $400,000 Convertible Promissory Note dated July 3, 2024 (executed July 5, 2024) by 5 String Solutions, LLC for the benefit of Paid, Inc. 10.2 Security Agreement dated July 5, 2024 by and among 5String Solutions , LLC, Paid, Inc. (as secured party and collateral agent) and named subordinated creditors (as secured parties) 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)