10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

☐  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to __________

For the quarterly period ended June 30, 2022

COMMISSION FILE NUMBER 0-28720

(Exact Name of Registrant as Specified in its Charter)

Delaware	73-1479833
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)

225 Cedar Hill Street, Marlborough, Massachusetts 01752

(Address of Principal Executive Offices) (Zip Code)

(617) 861-6050

(Registrant’s Telephone Number, Including Area Code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol	Name of each exchange on which registered
None	None	None

Securities registered under Section 12(g) of the Act:

Common Stock, $0.001 Par Value

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.  Yes ☐     No ☑

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐     No ☑

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒     No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  

Yes ☒     No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of “large accelerated filer”, “accelerated filer”, and “smaller reporting company” in Rule 12b-2 of the Exchange Act.  (Check one):

Large accelerated filer ☐ Accelerated Filer ☐ Non-accelerated filer ☑ Smaller reporting company  ☑ Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  

Yes ☐     No ☒

As of August 15, 2022, the issuer had outstanding 7,786,284 shares of its Common Stock.

PAID, INC.

FORM 10-Q

TABLE OF CONTENTS

Part I – Financial Information
	Item 1.	Financial Statements
		Condensed Consolidated Balance Sheets
		June 30, 2022 (unaudited) and December 31, 2021 (audited)	1
		Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)
		Three and six months ended June 30, 2022, and 2021	2
		Unaudited Condensed Consolidated Statements of Cash Flows
		Six months ended June 30, 2022, and 2021	3
		Unaudited Condensed Consolidated Statements of Changes in Shareholders’ Equity Three and six months ended June 30, 2022, and 2021	4
		Notes to Condensed Consolidated Financial Statements (unaudited)	5
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	15
	Item 3.	Quantitative and Qualitative Disclosures about Market Risk	19
	Item 4.	Controls and Procedures	19
Part II – Other Information
	Item 1.	Legal Proceedings	20
	Item 1A.	Risk Factors	20
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	20
	Item 3.	Defaults Upon Senior Securities	20
	Item 4.	Mine Safety Disclosures	20
	Item 5.	Other Information	20
	Item 6.	Exhibits	20
	Signatures		21

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PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

PAID, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

	June 30, 2022			December 31,
	(Unaudited)			2021
ASSETS
Current assets:
Cash and cash equivalents	$	3,212,244		$	2,839,687
Accounts receivable, net		292,854			215,109
Prepaid expenses and other current assets		74,350			164,823
Total current assets		3,579,448			3,219,619
Property and equipment, net		32,195			40,493
Intangible assets, net		2,963,111			3,175,198
Operating lease right-of-use assets		42,569			61,040
Total assets	$	6,617,323		$	6,496,350
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	2,383,722		$	2,300,509
Accrued expenses		421,212			376,387
Contract liabilities		12,715			11,154
Operating lease obligations – current portion		36,972			36,123
Total current liabilities		2,854,621			2,724,173
Long-term liabilities:
Operating lease obligations – net of current portion		5,274			25,187
Deferred tax liability, net		824,180			838,312
Total liabilities		3,684,075			3,587,672
Commitments and contingencies
Shareholders' equity:
Series A Preferred stock, $0.001 par value, 5,000,000 shares authorized; no shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively		-			-
Common stock, $0.001 par value, 25,000,000 shares authorized; 7,820,124 shares issued and 7,786,284 shares outstanding at June 30, 2022, 7,807,103 shares issued and 7,773,263 shares outstanding at December 31, 2021		7,820			7,807
Additional paid-in capital		72,751,200			72,691,201
Accumulated other comprehensive income		535,079			590,067
Accumulated deficit		(70,303,004	)		(70,322,550	)
Common stock in treasury, at cost, 33,840 shares at June 30, 2022 and December 31, 2021		(57,847	)		(57,847	)
Total shareholders' equity		2,933,248			2,908,678
Total liabilities and shareholders' equity	$	6,617,323		$	6,496,350

See accompanying notes to condensed consolidated financial statements

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PAID, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(Unaudited)

	Three Months Ended						Six Months Ended
	June 30, 2022			June 30, 2021			June 30, 2022			June 30, 2021
Revenues, net	$	4,535,665		$	4,015,810		$	8,145,366		$	7,528,583
Cost of revenues		3,513,888			3,082,761			6,325,097			5,716,519
Gross profit		1,021,777			933,049			1,820,269			1,812,064
Operating expenses:
Salaries and related		442,796			453,274			901,305			883,449
General and administrative		299,504			240,236			598,906			483,401
Share-based compensation		41,916			144,201			60,012			407,814
Amortization of other intangible assets		78,472			125,146			160,511			246,541
Total operating expenses		862,688			962,857			1,720,734			2,021,205
Income (loss) from operations		159,089			(29,808	)		99,535			(209,141	)
Provision for income taxes		79,089			556			79,989			956
Net income (loss)	$	80,000		$	(30,364	)	$	19,546		$	(210,097	)
Net income (loss) per share – basic	$	0.01		$	-		$	-		$	(0.03	)
Weighted average number of common shares outstanding - basic		7,775,266			7,759,142			7,774,270			7,110,755
Net income (loss) per share – diluted	$	0.01		$	-		$	-		$	(0.03	)
Weighted average number of common shares outstanding - diluted		7,801,262			7,759,142			7,804,144			7,110,755
Condensed consolidated statements of comprehensive income (loss):
Net income (loss)	$	80,000		$	(30,364	)	$	19,546		$	(210,097	)
Other comprehensive income (loss):
Foreign currency translation adjustments		(93,288	)		46,026			(54,988	)		86,538
Comprehensive income (loss)	$	(13,288	)	$	15,662		$	(35,442	)	$	(123,559	)

See accompanying notes to condensed consolidated financial statements

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PAID, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE SIX MONTHS ENDED JUNE 30,

(Unaudited)

	2022			2021
Cash flows from operating activities:
Net income (loss)	$	19,546		$	(210,097	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		168,219			259,919
Amortization of operating lease right-of-use assets		17,656			16,423
Share-based compensation		60,012			407,814
Provision for bad debt		13,500			-
Changes in assets and liabilities:
Accounts receivable		(94,252	)		(45,904	)
Prepaid expenses and other current assets		89,330			137,899
Accounts payable		120,563			(39,938	)
Accrued expenses		49,880			266,433
Contract liabilities		1,771			1,813
Operating lease obligations		(18,252	)		(17,030	)
Net cash provided by operating activities		427,973			777,332
Cash flows from investing activities:
Purchase of property and equipment		-			(1,120	)
Net cash used in investing activities		-			(1,120	)
Cash flows from financing activities:
Payments on finance leases		-			(2,907	)
Net cash used in financing activities		-			(2,907	)
Effect of exchange rate changes on cash and cash equivalents		(55,416	)		49,009
Net change in cash and cash equivalents		372,557			822,314
Cash and cash equivalents, beginning of period		2,839,687			1,644,210
Cash and cash equivalents, end of period	$	3,212,244		$	2,466,524
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid during the period for:
Income taxes	$	1,356		$	956
Interest	$	-		$	86
SUPPLEMENTAL DISCLOSURES OF NON-CASH ITEMS
Issuance of common shares in settlement of accrued expenses	$	-		$	2,005,500

See accompanying notes to condensed consolidated financial statements

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PAID, INC. CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2021 (Unaudited)
	Common Stock				Accrued Common Stock			Additional Paid-in		Accumulated Other Comprehensive		Accumulated			Treasury Stock
	Shares		Amount		Bonus			Capital		Income		Deficit			Shares			Amount			Total
Balance, January 1, 2021		6,489,004	$	6,489	$	2,005,500		$	70,083,486	$	570,761	$	(69,625,790	)		(33,840	)	$	(57,847	)	$	2,982,599
Foreign currency translation adjustment		-		-		-			-		40,512		-			-			-			40,512
Share-based compensation expense		-		-		-			24,863		-		-			-			-			24,863
Issuance of common stock for accrued bonus and compensation		1,300,000		1,300		(2,005,500	)		2,242,950		-		-			-			-			238,750
Net loss		-		-		-			-		-		(179,733	)		-			-			(179,733	)
Balance, March 31, 2021		7,789,004	$	7,789	$	-			72,351,299	$	611,273	$	(69,805,523	)		(33,840	)	$	(57,847	)	$	3,106,991
Foreign currency translation adjustment		-		-		-			-		46,026		-			-			-			46,026
Share-based compensation expense		-		-		-			104,201		-		-			-			-			104,201
Issuance of common stock for accrued bonus and compensation		18,099		18		-			39,982		-		-			-			-			40,000
Net loss		-		-		-			-		-		(30,364	)		-			-			(30,364	)
Balance, June 30, 2021		7,807,103	$	7,807	$	-			72,495,482	$	657,299	$	(69,835,887	)		(33,840	)	$	(57,847	)	$	3,266,854

PAID, INC. CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2022 (Unaudited)
	Common Stock				Additional Paid-in		Accumulated Other Comprehensive			Accumulated			Treasury Stock
	Shares		Amount		Capital		Income			Deficit			Shares			Amount			Total
Balance, January 1, 2022		7,807,103	$	7,807	$	72,691,201	$	590,067		$	(70,322,550	)		(33,840	)	$	(57,847	)	$	2,908,678
Foreign currency translation adjustment		-		-		-		38,300			-			-			-			38,300
Share-based compensation expense		-		-		18,096		-			-			-			-			18,096
Net loss		-		-		-		-			(60,454	)		-			-			(60,454	)
Balance, March 31, 2022		7,807,103	$	7,807	$	72,709,297	$	628,367		$	(70,383,004	)		(33,840	)	$	(57,847	)	$	2,904,620
Foreign currency translation adjustment		-		-		-		(93,288	)		-			-			-			(93,288	)
Share-based compensation expense		-		-		16,916		-			-			-			-			16,916
Issuance of common stock for compensation		13,021		13		24,987		-			-			-			-			25,000
Net income		-		-		-		-			80,000			-			-			80,000
Balance, June 30, 2022		7,820,124	$	7,820	$	72,751,200	$	535,079		$	(70,303,004	)		(33,840	)	$	(57,847	)	$	2,933,248

See accompanying notes to condensed consolidated financial statements

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PAID, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

June 30, 2022

Note 1. Organization and Significant Accounting Policies

ShipTime Canada Inc. (“ShipTime”) has developed a SaaS-based application, which focuses on the small and medium business segments. This offering allows members to quote, process, generate labels, dispatch and track courier and LTL shipments all from a single interface. The application provides customers with a choice of today’s leading couriers and freight carriers all with discounted pricing allowing members to save on every shipment. ShipTime can also be integrated into on-line shopping carts to facilitate sales via e-commerce. We actively sell directly to small and medium businesses and through long standing partnerships with selected associations throughout Canada. 

PAID, Inc. (“PAID”, the “Company”, “we”, “us”, or “our”) has developed AuctionInc, which 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 product has 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.

BeerRun Software is a brewery management and Alcohol and Tobacco Tax and Trade Bureau tax reporting software. Small craft brewers can utilize the product to manage brewery schedules, inventory, packaging, sales and purchasing. Tax reporting can be processed with a single click and is fully customizable by state or providence. The software is designed to integrate with QuickBooks accounting platforms by using our powerful sync engine. We currently offer two versions of the software BeerRun and BeerRun Light which excludes some of the enhanced features of BeerRun without disrupting the core functionality of the software.

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 operated 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.

General Presentation and Basis of Consolidated Financial Statements

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), and with the rules and regulations of the Securities and Exchange Commission ("SEC") regarding interim financial reporting. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the Company's audited consolidated financial statements and notes thereto included in the Annual Report on Form 10-K for the year ended December 31, 2021 that was filed on March 31, 2022.

In the opinion of management, the Company has prepared the accompanying unaudited condensed consolidated financial statements on the same basis as its audited consolidated financial statements, and these unaudited condensed consolidated financial statements include all adjustments, consisting of normal recurring adjustments necessary for a fair presentation of the results of the interim periods presented. The operating results for the interim periods presented are not necessarily indicative of the results expected for the full year 2022.

Liquidity and Management’s Plans

At June 30, 2022, the Company reported cash and cash equivalents of $3,212,244 and net working capital of $724,827 and reported cash flows from operations of $427,973 for the six months ended June 30, 2022. The Company has reported an operating income of $19,546 for the six months ended June 30, 2022 and has an accumulated deficit of $70,303,004 at June 30, 2022.

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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. In addition, management continues to explore opportunities and has organized additional resources to monetize its patents. However, 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 continues to 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 2023 and will have a positive impact on the Company for the foreseeable future.

Principles of Consolidation

The condensed consolidated financial statements include the accounts of PAID, Inc. and its wholly owned subsidiaries, PAID Run, LLC and ShipTime Canada, Inc. All intercompany accounts and transactions have been eliminated.

Foreign Currency

The currency of ShipTime, the Company’s international subsidiary, is in Canadian dollars. Foreign currency denominated assets and liabilities are translated into U.S. dollars using the exchange rates in effect at June 30, 2022 and December 31, 2021. Results of operations and cash flows are translated using the average exchange rates throughout the period. The effect of exchange rate fluctuations on translation of assets and liabilities is included as a separate component of shareholders’ equity in accumulated other comprehensive income.

Geographic Concentrations

The Company conducts business in the U.S. and Canada. For customers headquartered in their respective countries, for the three months ended June 30, 2022, the Company derived approximately 100% of its revenues from Canada and 0% from the U.S. compared to 99% from Canada and 1% from the U.S for the same period in 2021. The Company derived approximately 99% of its revenues from Canada and 1% from the U.S. during the three and six months ended June 30, 2022 and 2021.

At June 30, 2022, the Company maintained 100% of its property and equipment net of accumulated depreciation in Canada.

Right of Use Assets

A right-of-use asset represents a lessee’s right to use a leased asset for the term of the lease. Our right-of-use assets generally consist of an operating lease for a building.

Right-of-use assets are measured initially at the present value of the lease payments, plus any lease payments made before a lease began and any initial direct costs, such as commissions paid to obtain a lease.

Right-of-use assets are subsequently measured at the present value of the remaining lease payments, adjusted for incentives, prepaid or accrued rent, and any initial direct costs not yet expensed.

Long-Lived Assets

The Company reviews the carrying values of its long-lived assets for possible impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. 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 and six months ended June 30, 2022 and 2021. 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.

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Revenue Recognition

The Company generates revenue principally from fees for coordinating shipping services, sales of shipping calculator subscriptions, brewery management software subscriptions, merchant processing services and client services.

Nature of Goods and Services

For label generation service revenues, the Company recognizes revenue when a customer has successfully prepared a shipping label and scheduled a pickup. Customers with pickups after the end of the reporting period are recorded as contract liabilities on the condensed consolidated balance sheets. 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 shipping calculator revenues and brewery management software revenues, the Company recognizes subscription revenue on a monthly basis. Shipping calculator customers’ renewal dates are based on their date of installation and registration of the shipping calculator line of products. The timing of the revenue recognition and cash collection may vary within a given quarter and the deposits for future services are recorded as contract liabilities on the condensed consolidated balance sheets. Brewery management software subscribers are billed monthly at the first of the month. All payments are made via credit card for the following month.

Merchant processing revenue consists of fees a seller pays us to process their payment transactions and is recognized upon authorization of a transaction. Revenue is recognized net of estimated refunds, which are reversals of transactions initiated by sellers. We act as the merchant of record for our sellers, which puts us in their shoes with respect to card networks and puts the risk for refunds and chargebacks on us. The gross transaction fees collected from sellers is recognized as revenue as we are the primary obligor to the seller and are responsible for processing the payment, have latitude in establishing pricing with respect to the sellers and other terms of service, have sole discretion in selecting the third party to perform the settlement, and assume the credit risk for the transaction processed.

Revenue Disaggregation

The Company operates in five reportable segments (see below).

Performance Obligations

At contract inception, an assessment of the goods and services promised in the contracts with customers is performed and a performance obligation is identified for each distinct promise to transfer to the customer a good or service (or bundle of goods or services). To identify the performance obligations, the Company considers all of the goods or services promised in the contract regardless of whether they are explicitly stated or are implied by customary business practices. Revenue is recognized when the performance obligation has been met, which is when the customer has successfully prepared a shipping label and scheduled a pickup for shipping coordination and label generation services. The Company considers control to have transferred at that time because the Company has a present right to payment at that time, the Company has provided the shipping label, and the customer is able to direct the use of, and obtain substantially all of the remaining benefits from the shipping label.

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

Customers of PaidPayments receive a merchant identification number which allows them to process credit card transactions. Once the transaction is approved, the funds are disbursed in an overnight feed and the Company has met its performance obligation.

The Company has no shipping and handling activities related to contracts with customers.

Revenues are recognized net of any taxes collected from customers, which are subsequently remitted to government authorities.

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Significant Payment Terms

Pursuant to the Company’s contracts with its customers, amounts are collected up front primarily through credit/debit card transactions. The Company has offered to its customers consolidated payments which are billed weekly and are paid with a credit card on file. Accordingly, the Company determined that its contracts with customers do not include extended payment terms or a significant financing component.

Variable Consideration

In some cases, the nature of the Company’s contracts may give rise to variable consideration, including rebates and cancellations or other similar items that generally decrease the transaction price.

Variable consideration is estimated at the most likely amount that is expected to be earned. Estimated amounts are included in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. Estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of the anticipated performance and all information (historical, current and forecasted) that is reasonably available.

Revenues are recorded net of variable consideration, such as rebates, refunds, and cancellations.

Warranties

The Company’s products and services are provided on an “as is” basis and no warranties are included in the contracts with customers. Also, the Company does not offer separately priced extended warranty or product maintenance contracts.

Contract Assets

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 $292,854 and $215,109 as of June 30, 2022 and December 31, 2021, respectively. The Company has no customer that makes up 10% of the accounts receivable balance at June 30, 2022. 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.

Contract Liabilities (Deferred Revenue)

Contract liabilities are recorded when cash payments are received in advance of the Company’s performance (including rebates). Contract liabilities were $12,715 and $11,154 at June 30, 2022 and December 31, 2021, respectively. During the six months ended June 30, 2022, the Company recognized revenues of $11,154, related to contract liabilities outstanding at the beginning of the year.

Earnings (Loss) Per Common Share

Basic earnings (loss) per share represent income (loss) available to common shareholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings (loss) per share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income (loss) that would result from the assumed issuance. 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 earnings (loss) per share for the three- and six-month periods ended June 30, 2021 because they would reduce the reported loss per share and therefore have an anti-dilutive effect.

For the three months ended June 30, 2022 and 2021 and the six months ended June 30, 2022 and 2021, there were approximately 0 and 36,000 and 0 and 37,000, respectively, of potentially dilutive shares excluded from the diluted loss per share calculation, as their effect would be anti-dilutive.

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The following is a reconciliation of the numerators and denominators of the basic earnings (loss) per common share and diluted earnings (loss) per common share computation for the three and six months ended June 30, 2022 and 2021.

	Three Months Ended June 30, 2022		Three Months Ended June 30, 2021
Numerator:
Net income (loss)	$	80,000	$	(30,364	)
Denominator:
Basic weighted-average shares outstanding		7,775,266		7,759,142
Effect of dilutive securities		25,996		-
Diluted weighted-average shares outstanding		7,801,262		7,759,142
Basic income (loss) per share	$	0.01	$	-
Diluted income (loss) per share	$	0.01	$	-

	Six Months Ended June 30, 2022		Six Months Ended June 30, 2021
Numerator:
Net income (loss)	$	19,546	$	(210,097	)
Denominator:
Basic weighted-average shares outstanding		7,774,270		7,110,755
Effect of dilutive securities		29,874		-
Diluted weighted-average shares outstanding		7,804,144		7,110,755
Basic income (loss) per share	$	-	$	(0.03	)
Diluted income (loss) per share	$	-	$	(0.03	)

Segment Reporting

The Company reports information about segments of its business in its annual consolidated financial statements and reports selected segment information in its quarterly reports issued to shareholders. The Company also reports on its entity-wide disclosures about the products and services it provides and reports revenues and its major customers. The Company’s five reportable segments are managed separately based on fundamental differences in their operations. At June 30, 2022, the Company operated in the following five reportable segments:

a.	Client services;
b.	Shipping calculator services;
c.	Brewery management software;
d.	Merchant processing services;
e.	Shipping coordination and label generation services; and
f.	Corporate operations

The Company evaluates performance and allocates resources based upon operating income. The accounting policies of the reportable segments are the same as those described in this summary of significant accounting policies. The Company’s chief operating decision maker is the Chief Executive Officer/Chief Financial Officer.

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The following table compares total revenue for the periods indicated.

	Three Months Ended				Six Months Ended
	June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021
Client services	$	477	$	226	$	757	$	1,509
Shipping calculator services		987		5,856		6,531		11,719
Brewery management software		8,356		16,025		17,731		35,225
Merchant processing services		4,445		14,453		16,498		26,978
Shipping coordination and label generation services		4,521,400		3,979,250		8,103,849		7,453,152
Total revenues	$	4,535,665	$	4,015,810	$	8,145,366	$	7,528,583

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

	Three Months Ended						Six Months Ended
	June 30, 2022			June 30, 2021			June 30, 2022			June 30, 2021
Client services	$	365		$	226		$	645		$	1,195
Shipping calculator services		(1,076	)		3,406			2,489			5,417
Brewery management software		(19,323	)		6,386			(24,066	)		18,018
Merchant processing services		(4,060	)		5,704			(21	)		10,326
Shipping coordination and label generation services		310,378			65,025			449,279			(16,802	)
Corporate operations		(127,195	)		(110,555	)		(328,791	)		(227,295	)
Total income (loss) from operations	$	159,089		$	(29,808	)	$	99,535		$	(209,141	)

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.

Recent Accounting Pronouncements

There were no new accounting pronouncements issued by the FASB during the period that would apply to the Company and would have a material impact on its financial position or results of operations.

Note 2. Accrued Expenses

Accrued expenses are comprised of the following:

	June 30, 2022 (unaudited)		December 31, 2021
Payroll and related costs	$	36,357	$	58,182
Professional and consulting		-		26,070
Royalties		47,803		47,803
Accrued cost of revenues		304,740		212,020
Sales tax		31,902		31,902
Other		410		410
Total	$	421,212	$	376,387

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Note 3. Intangible Assets

The Company holds several patents for the real-time calculation of shipping costs for items purchased through online auctions using a zip code as a destination location indicator. It includes shipping charge calculations across multiple carriers and accounts for additional characteristics of the item being shipped, such as weight, special packaging or handling, and insurance costs. These patents help facilitate rapid and accurate estimation of shipping costs across multiple shipping carriers and also include real-time calculation of shipping.

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

At June 30, 2022, intangible assets consisted of the following:

	Patents			Trade Name			Technology & Software			Customer Relationships			Total
Gross carrying amount	$	16,000		$	831,922		$	615,053		$	4,883,789		$	6,346,764
Accumulated amortization		(16,000	)		(831,922	)		(615,053	)		(1,920,678	)		(3,383,653	)
	$	-		$	-		$	-		$	2,963,111		$	2,963,111

At December 31, 2021, intangible assets consisted of the following:

	Patents			Trade Name			Technology & Software			Customer Relationships			Total
Gross carrying amount	$	16,000		$	846,186		$	624,162		$	4,963,860		$	6,450,208
Accumulated amortization		(16,000	)		(843,240	)		(624,162	)		(1,791,608	)		(3,275,010	)
	$	-		$	2,946		$	-		$	3,172,252		$	3,175,198

Amortization expense of intangible assets for the three months ended June 30, 2022 and 2021 was $78,472 and $125,146, respectively, and for the six months ended June 30, 2022 and 2021 was $160,511 and $246,541, respectively.

Note 4. Commitments and Contingencies

Legal Matters

In the normal course of business, the Company periodically becomes involved in litigation and disputes. During 2021, the Company was notified of a dispute related to its non-renewal of the employment agreement with Mr. Allan Pratt, the Company's former President, CEO and Chairman. In February 2020, the Company did not renew Mr. Pratt’s employment agreement, but Mr. Pratt alleges in a court in Canada that the Company terminated him and that the Company owes him a severance payment. Around the same time that Mr. Pratt’s employment term expired, the Company’s Board of Directors voted to reduce the size of the Board from five to three, and Mr. Pratt and Mr. Austin Lewis, then 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.

Indemnities and Guarantees

The Company has made certain indemnities and guarantees, under which it may be required to make payments to a guaranteed or indemnified party, in relation to certain actions or transactions. The Company indemnifies its directors, officers, employees and agents, as permitted under the laws of the State of Delaware. In connection with its facility lease, the Company has agreed to indemnify its lessor for certain claims arising from the use of the facilities. The duration of the guarantees and indemnities varies and is generally tied to the life of the agreement. These guarantees and indemnities do not provide for any limitation of the maximum potential future payments the Company could be obligated to make. Historically, the Company has not been obligated nor incurred any payments for these obligations and, therefore, no liabilities have been recorded for these indemnities and guarantees in the accompanying condensed consolidated balance sheets.

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Note 5. Shareholders’ Equity

Preferred Stock

The Company’s amended Certificate of Incorporation authorizes the issuance of 20,000,000 shares of blank-check preferred stock at $0.001 par value. The Board of Directors will be authorized to fix the designations, rights, preferences, powers and limitations of each series of the preferred stock.

The Company filed a Certificate of Designations effective on December 30, 2016, which sets aside 5,000,000 shares of Preferred Stock as Series A Preferred Stock. The Series A Preferred Stock carries a coupon payment obligation of 1.5% of the liquidation value per share ($3.03) per year in cash or additional Series A Preferred Stock, calculated by taking the 30-day average closing price for a share of common stock for the month immediately preceding the coupon payment date which is made annually. The Series A Preferred Stock has no voting or conversion rights. If purchased, redeemed, or otherwise acquired (other than conversion), the preferred stock may be reissued. As of June 30, 2022 and December 31, 2021, there are no outstanding shares of Series A Preferred Stock.

Common 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. The Company made available to its ShipTime Canada exchangeable preferred shareholders the one-time option to convert existing book entry preferred shares and exchangeable rights to preferred shares into PAID common shares. As a result, certain ShipTime exchangeable shareholders exercised their rights to receive 1,461,078 shares of PAID Series A Preferred Stock for 1,461,078 shares of PAID common stock. At the same time, the Company made available to its Series A Preferred Stock shareholder the option to exchange existing Series A preferred shares for PAID common shares. The exchange was offered on a one-to-one basis. Shareholders holding 1,015,851 shares of Series A Preferred Stock exchanged such shares for 1,015,851 shares of PAID common stock. Furthermore, because of the amended exchange rights, the Company reflected an additional exchange of PAID Series A Preferred Stock shares totaling 2,089,298 to PAID common shares, representing the additional amount of PAID common shares that will be issued to the ShipTime shareholders upon the exchange. During 2020, two shareholders sold 500 ShipTime exchangeable shares which were subsequently exchanged for 178,000 common shares. In total, the Company has reserved for future issuance of 2,213,608 shares of PAID common stock with respect to the remaining 6,218 exchangeable shares to be issued as a result of the ShipTime acquisition which are considered issued and outstanding as of June 30, 2022 for financial reporting purposes.

On March 29, 2021, the Company's Board of Directors authorized the issuance of 1,050,000 bonus shares of PAID common stock to the CEO/CFO for services rendered during 2019 and 2020. This bonus was valued at $2,005,500 based on the closing price of the Company's common stock at March 29, 2021 and was recorded in accrued common stock bonus in shareholders’ equity at December 31, 2020. Also, at March 29, 2021, the Company’s Board of Directors authorized the issuance of an additional 250,000 shares to the CEO/CFO as a one-time sign-on bonus resulting in a share-based compensation expense of $477,500, which was recognized ratably during 2021 as the bonus shares were subject to repurchase if the CEO/CFO terminated employment through January 1, 2022. All of these shares were issued on March 31, 2021. During the second quarter of 2021, the Company issued 18,099 shares valued at $2.21 per share for a total of $40,000 to two employees as bonus compensation which is included in share-based compensation in the condensed statements of operations and comprehensive income (loss) for the three and six months ended June 30, 2021. During the second quarter of 2022, the Company issued 13,021 shares valued at $1.92 per share for a total share-based compensation expense of $25,000 to one employee as bonus compensation which is included in share-based compensation in the condensed consolidated statements of operations and comprehensive income (loss) for the three and six months ended June 30, 2022. The share were issued pursuant to the exemption for registration provided by Section 4(a)(2) of the Securities Act and Rule 506 of the SEC’s Regulation D thereunder.

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Share-based Incentive Plans

On March 23, 2018, the Board of Directors voted to approve the 2018 Stock Option Plan which reserves 450,000 non-qualified stock options to be granted to employees. The Company has three additional stock option plans that include both incentive and non-qualified stock options to be granted to certain eligible employees, non-employee directors, or consultants of the Company. On November 10, 2020, the board voted to increase the 2018 Stock Option Plan from 450,000 options to 900,000 options. For the year ended December 31, 2020, the Company granted 105,000 stock options to employees, consultants and directors. During 2021, the Company issued 10,000 stock options to one employee. These options have a three-year vesting schedule with one-third vesting immediately, one-third vesting in 18 months and the final one-third vesting in 36 months, they expire if not exercised in ten years from the grant date, and their exercise price is $1.91 per share.

For the three- and six-month periods ended June 30, 2022, the Company recorded $16,916 and $35,012, respectively, of share-based compensation expense related to the vesting of applicable options granted in 2021 and prior years.  For the three-and six-month periods ended June 30, 2021, the Company recorded $24,618 and $49,481, respectively, of share-based compensation expense related to the vesting of applicable options granted in 2021 and prior years.    

Note 6. Leases

We have an operating lease for our corporate offices in Canada and finance leases for furniture and equipment which expired in June 2021. Our leases have remaining lease terms of thirteen months to fourteen months, and our primary operating leases include options to extend the leases for four years. Future renewal options that are not likely to be executed as of the balance sheet date are excluded from right-of-use assets and related lease liabilities.

We report operating leased assets, as well as operating lease current and noncurrent obligations on our balance sheets for the right to use the building in our business.

Generally, interest rates are stated in our leases for equipment. When no interest rate is stated in a lease, however, we review the interest rates implicit in our recent finance leases to estimate our incremental borrowing rate. We determine the rate implicit in a lease by using the most recent finance lease rate, or other method we think most closely represents our incremental borrowing rate.

The components of lease expense were as follows:

	Three Months Ended June 30, 2022		Three Months Ended June 30, 2021
Operating lease cost	$	10,015	$	10,407
Finance lease cost:
Amortization of leased assets	$	-	$	2,816
Interest on lease liabilities		-		29
Total finance lease cost	$	-	$	2,845

	Six Months Ended June 30, 2022		Six Months Ended June 30, 2021
Operating lease cost	$	20,108	$	20,502
Finance lease cost:
Amortization of leased assets	$	-	$	5,557
Interest on lease liabilities		-		86
Total finance lease cost	$	-	$	5,643

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Supplemental cash flow information related to leases was as follows:

	Six Months Ended June, 2022		Six Months Ended June 30, 2021
Cash paid for amounts included in leases:
Operating cash flows from operating leases	$	20,704	$	21,111
Operating cash flows from finance leases	$	-	$	86
Financing cash flows from finance leases	$	-	$	2,907
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	-	$	-
Finance leases	$	-	$	-

Supplemental balance sheet information related to leases was as follows:

	June 30, 2022			December 31, 2021
Operating leases:
Operating lease right-of-use assets	$	42,569		$	61,040
Current portion of operating lease obligations	$	36,972		$	36,123
Operating lease obligations, net of current portion		5,274		$	25,187
Total operating lease liabilities	$	42,246		$	61,310
Finance leases:
Property and equipment, at cost	$	53,558		$	53,885
Accumulated depreciation		(53,558	)	$	(53,885	)
Property and equipment, net	$	-		$	-
Current portion of finance lease obligations	$	-		$	-
Finance lease obligations, net of current portion		-			-
Total finance lease liabilities	$	-		$	-

	June 30, 2022			December 31, 2021
Weighted Average Remaining Lease Term
Operating lease (in years)		1.1			1.6
Finance leases		-			-
Weighted Average Discount Rate
Operating lease		9.0	%		9.0	%
Finance leases		-	%		-	%

A summary of future minimum payments under non-cancellable operating lease commitment as of June 30, 2022 is as follows:

Years ending December 31,	Total
2022 (remaining portion)		20,243
2023		25,036
Total lease liabilities	$	45,279
Less amount representing interest		(3,033	)
Total		42,246
Less current portion		(36,972	)
	$	5,274

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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward Looking Statements

This Quarterly Report on Form 10-Q contains certain forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934) regarding PAID, Inc. (the “Company”) and its business, financial condition, results of operations and prospects. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates", "could", "may", "should", "will", "would", and similar expressions or variations of such words are intended to identify forward-looking statements in this report. Additionally, statements concerning future matters such as the development of new services, technology enhancements, purchase of equipment, credit arrangements, possible changes in legislation and other statements regarding matters that are not historical are forward-looking statements.

Although forward-looking statements in this quarterly report reflect the good faith judgment of the Company's management, such statements can only be based on facts and factors currently known by the Company. Consequently, forward-looking statements are inherently subject to risks, contingencies and uncertainties, and actual results and outcomes may differ materially from results and outcomes discussed in this report. Although the Company believes that its plans, intentions and expectations reflected in these forward-looking statements are reasonable, the Company can give no assurance that its plans, intentions or expectations will be achieved. For a more complete discussion of these risk factors, see Item 1A, "Risk Factors", in the Company's Form 10-K for the fiscal year ended December 31, 2021 that was filed on March 31, 2022.

For example, the Company's ability to maintain positive cash flow and to become profitable may be adversely affected as a result of a number of factors that could thwart its efforts. These factors include the Company's inability to successfully implement the Company's business and revenue model, higher costs than anticipated, the Company's inability to sell its products and services to a sufficient number of customers, the introduction of competing products or services by others, the Company's failure to attract sufficient interest in, and traffic to, its site, the Company's inability to complete development of its products, the failure of the Company's operating systems, and the Company's inability to increase its revenues as rapidly as anticipated. If the Company is not profitable in the future, it will not be able to continue its business operations.

Except as required by applicable laws, we do not intend to publish updates or revisions of any forward-looking statements we make to reflect new information, future events or otherwise. Readers are urged to review carefully and to consider the various disclosures made by the Company in this Quarterly Report, which attempts to advise interested parties of the risks and factors that may affect our business, financial condition, results of operations and prospects.

Overview

ShipTime Inc. has developed a SaaS based application, which focuses on the small to medium business segment. This offering allows members to quote, process, generate labels, dispatch and track courier and LTL shipments all from a single interface. The application provides customers with a choice of today’s leading couriers and freight carriers all with discounted pricing allowing members to save on every shipment. ShipTime can also be integrated into on-line shopping carts to facilitate sales via e-commerce. We actively sell directly to small businesses and through long standing partnerships with selected associations throughout Canada.  Our focus in 2022 will be to continue to significantly grow this portion of our business.

PAID, Inc. (the “Company”) has developed AuctionInc, which 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 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.

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BeerRun Software is a brewery management and Alcohol and Tobacco Tax and Trade Bureau tax reporting software. Small craft brewers can utilize the product to manage brewery schedules, inventory, packaging, sales and purchasing. Tax reporting can be processed with a single click and is fully customizable by state or providence. The software is designed to integrate with QuickBooks accounting platforms by using our powerful sync engine. We currently offer two versions of the software BeerRun and BeerRun Light which excludes some of the enhanced features of BeerRun without disrupting the core functionality of the software.

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 operated 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.

Significant Accounting Policies

Our significant accounting policies are more fully described in Note 3 to our consolidated financial statements for the years ended December 31, 2021 and 2020 included in our Form 10-K filed on March 31, 2022, as updated and amended in Note 1 of the Notes to Condensed Consolidated Financial Statements included herein. However, certain of our accounting policies, most notably with respect to revenue recognition, are particularly important to the portrayal of our financial position and results of operations and require the application of significant judgment by our management; as a result, they are subject to an inherent degree of uncertainty. In applying these policies, our management makes estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosures. Those estimates and judgments are based upon our historical experience, the terms of existing contracts, our observance of trends in the industry, information that we obtain from our customers and outside sources, and on various other assumptions that we believe to be reasonable and appropriate under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

Results of Operations

Comparison of the three months ended June 30, 2022 and 2021.

The following discussion compares the Company's results of operations for the three months ended June 30, 2022 with those for the three months ended June 30, 2021. 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.

Revenues

The following table compares total revenue for the periods indicated.

	Three months ended June 30,
	2022		2021		% Change
Client services	$	477	$	226		111	%
Brewery management software		8,356		16,025		(48)	%
Shipping coordination and label generation services		4,521,400		3,979,250		14	%
Merchant processing services		4,445		14,453		(69)	%
Shipping calculator services		987		5,856		(83)	%
Total revenues	$	4,535,665	$	4,015,810		13	%

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Revenues increased 13% in the second quarter primarily from the seasonal increase in shipping along with the ongoing increases to the fuel surcharges for revenues related to our shipping coordination and label generation services.

Client services revenues increased $251 or 111% to $477 in the second quarter of 2022 compared to $226 in 2021. This increase is a result of additional movie posters sold at auction during the quarter.

Brewery management software revenues decreased $7,669 to $8,356 in 2022 from $16,025 in 2021. The decrease in revenues is due to cancellations of several clients and limited marketing of the software to new clients.

Shipping coordination and label generation services revenues increased $542,150 or 14% to $4,521,400 in the second quarter of 2022 compared to $3,979,250 in 2021. The increase is attributable to the seasonal increases in addition to the impact of the rising fuel surcharges.

Merchant processing services is available to businesses that accept credit card processing online. This segment has had difficulties with the launch and the Company has reduced the offering which resulted in a decline of 69% from $14,453 to $4,445 in the second quarter of 2022. The Company is reevaluating the launch and preparing to combine these services with other PAID products for a re-release.

Shipping calculator services revenue decreased $4,869 or 83% to $987 in the second quarter of 2022 compared to $5,856 in 2021.  The decrease was due to the cancellation of the remailing customer on the platform. Future revenues are related to the rebate program offered by one of our partners.

Gross Profit

Gross profit increased $88,728 or 10% in the second quarter of 2022 to $1,021,777 compared to $933,049 in 2021. Gross margin remained at 23% the second quarter of 2022 compared to the second quarter of 2021. The consistency in gross margin and increase in gross profit are a result of ongoing pricing evaluations of our shipping label generation services to remain competitive in the market.

Operating Expenses

Total operating expenses in the second quarter of 2022 were $862,688 compared to $962,857 in the second quarter of 2021, a decrease of $100,169 or 10%. The decrease is primarily due to a reduction in share-based compensation of $102,285 in addition to a reduction in amortization expense for several assets that are fully amortized.

Net Income (Loss)

The Company recorded a net income in the second quarter of 2022 of $80,000 compared to a net loss of ($30,364) for the same period in 2021. The net income (loss) per share available to common shareholders for the second quarter of 2022 and 2021 was $0.01 and $0.00 per share, respectively.

Comparison of the six months ended June 30, 2022 and 2021.

The following discussion compares the Company's results of operations for the six months ended June 30, 2022 with those for the six months ended June 30, 2021. 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.

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Revenues

The following table compares total revenue for the periods indicated.

	Six months ended June 30,
	2022		2021		% Change
Client services	$	757	$	1,509		(50)	%
Brewery management software		17,731		35,225		(50)	%
Shipping coordination and label generation services		8,103,849		7,453,152		9	%
Merchant processing services		16,498		26,978		(39)	%
Shipping calculator services		6,531		11,719		(44)	%
Total revenues	$	8,145,366	$	7,528,583		8	%

Revenues increased 8% in the first two quarters primarily from the increases to the fuel surcharges for revenues related to our shipping coordination and label generation services.

Client services revenues decreased $752 or 50% to $757 in the first two quarters of 2022 compared to $1,509 in 2021. This decrease is a result of the limited number of movie posters available for sale during the quarter.

Brewery management software revenues decreased $17,494 to $17,731 in 2022 from $35,225 in 2021. The decrease in revenues is due to cancellations of several clients and limited marketing of the software to new clients.

Shipping coordination and label generation services revenues increased $650,697 or 9% to $8,103,849 in the first two quarters of 2022 compared to $7,453,152 in 2021. The increase is attributable to the seasonal increases in addition to the impact of the rising fuel surcharges.

Merchant processing services is available to businesses that accept credit card processing online. This segment has had difficulties with the launch and the Company has reduced the offering which resulted in a decline of 39% from $26,978 to $16,498 in the first two quarters of 2022. The Company is reevaluating the launch and preparing to combine these services with other PAID products for a re-release.

Shipping calculator services revenue decreased $5,188 or 44% to $6,531 in the first two quarters of 2022 compared to $11,719 in 2021.  The decrease was due to the cancellation of the remaining customer on the platform. Future revenues are related to the rebate program offered by one of our partners.

Gross Profit

Gross profit increased $8,205 or 0% in the first two quarters of 2022 to $1,820,269 compared to $1,812,064 in 2021. Gross margin decreased from 24% in 2021 to 22% in 2022. The decrease in gross margin and increase in gross profit are a result of ongoing pricing evaluations of our shipping label generation services to remain competitive in the market.

Operating Expenses

Total operating expenses in the first two quarters of 2022 were $1,720,734 compared to $2,021,205 for the same period of 2021, a decrease of $300,471 or 15%. The decrease is primarily due to a reduction in share-based compensation of $347,802 in addition to a reduction in amortization expense for several assets that are fully amortized.

Net Income (Loss)

The Company recorded a net income in the first half of 2022 of $19,546 compared to a net loss of ($210,097) for the same period in 2021. The net income (loss) per share available to common shareholders for first two quarters of 2022 and 2021 was $0.00 and ($0.03) per share, respectively.

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Cash Flows from Operating Activities

A summarized reconciliation of the Company's net income (loss) to cash and cash equivalents provided by operating activities for the six months ended June 30, 2022 and 2021 is as follows:

	2022		2021
Net income (loss)	$	19,546	$	(210,097	)
Depreciation and amortization		168,219		259,919
Amortization of operating lease right-of-use assets		17,656		16,423
Share-based compensation		60,012		407,814
Provision for bad debt		13,500		-
Changes in assets and liabilities		149,040		303,273
Net cash provided by operating activities	$	427,973	$	777,332

Working Capital and Liquidity

The Company had cash and cash equivalents of $3,212,244 at June 30, 2022, compared to $2,839,687 at December 31, 2021. The Company had net working capital of $724,827 at June 30, 2022, an improvement of $229,381 compared to $495,446 at December 31, 2021. The increase in net working capital is attributable to the increase in cash and cash equivalents. This is due to the additional growth of the business along with ongoing cost savings measures.

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. There can be no assurance that anticipated growth will occur, and that the Company will be successful in launching new products and services. If necessary, management will seek alternative sources of capital to support operations.

ITEM 3.    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

As a smaller reporting company, the Company is not required to provide the information for this Item 3.

ITEM 4.    CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

The Company's management, including the Chief Executive Officer/Chief Financial Officer of the Company, as its principal financial officer has evaluated the effectiveness of the Company's “disclosure controls and procedures,” as such term is defined in Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”).  Based upon this evaluation, the Chief Executive Officer/Chief Financial Officer has concluded that, as of June 30, 2022, the Company's disclosure controls and procedures were not effective, due to material weaknesses in internal control over financial reporting, for the purpose of ensuring that the information required to be disclosed in the reports that the Company files or submits under the Exchange Act with the Securities and Exchange Commission is recorded, processed, summarized and reported within the time period specified by the Securities and Exchange Commission's rules and forms, and is accumulated and communicated to the Company's management, including its principal executive/financial officer as appropriate to allow timely decisions regarding required disclosure.

The Company has identified numerous material weaknesses in internal control over financial reporting as described in the Company's Form 10-K for the year ended December 31, 2021.

Changes in Internal Control over Financial Reporting

The Company continues to evaluate the internal controls over financial reporting and is working toward implementation of corporate governance and operational process documentation.

- 19 -

PART II - OTHER INFORMATION

ITEM 1.     LEGAL PROCEEDINGS

In the normal course of business, the Company periodically becomes involved in litigation and disputes. During 2021, the Company was notified of a dispute related to its non-renewal of the employment agreement with Mr. Allan Pratt, the Company's former 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. As of June 30, 2022, in the opinion of management, the Company had no pending litigation and disputes that would have a material adverse effect on the Company's consolidated financial position, results of operations, or cash flows.

ITEM 1A.     RISK FACTORS

The COVID-19 pandemic has created economic and financial disruptions that could adversely affect our business, financial condition, liquidity, capital, and results of operations. Even as efforts to contain the pandemic, including vaccinations, have made progress and some restrictions have relaxed, new variants of the virus are causing additional outbreaks. The impact of additional variants that may emerge, cannot be predicted at this time, and could depend on numerous factors, including the availability of vaccines in different parts of the world, vaccination rates among the population, the effectiveness of COVID-19 vaccines against other variants, and the response by governmental bodies to reinstate restrictive measures. The Company continues to monitor the health and wellbeing of its employees across the US and Canada.

ITEM 2.     UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

On June 16, 2022, the Company issued 13,021 shares of common stock at $1.92 per share for bonus compensation. The shares were issued pursuant to the exemption for registration provided by Section 4(a)(2) of the Securities Act and Rule 506 of the SEC’s Regulation D thereunder.

ITEM 3.     DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4.     MINE SAFETY DISCLOSURES

Not Applicable.

ITEM 5.     OTHER INFORMATION

Not Applicable

ITEM 6.     EXHIBITS

31.1	CEO Certification required under Section 302 of Sarbanes-Oxley Act of 2002
31.2	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 - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
101.SCH	Inline XBRL Taxonomy Extension Schema
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase
104	Cover Page Interactive Data File (embedded within the Inline XBRL Document and include in Exhibit 101)

- 20 -

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: August 15, 2022		W. Austin Lewis, IV, CEO, CFO

LIST OF EXHIBITS

10.1	Amendment to 2018 Non-Qualified Stock Option Plan
31.1	CEO Certification required under Section 302 of Sarbanes-Oxley Act of 2002
31.2	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 - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
101.SCH	Inline XBRL Taxonomy Extension Schema
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase
104	Cover Page Interactive Data File (embedded within the Inline XBRL Document and include in Exhibit 101)

- 21 -

EX-31.1

EXHIBIT 31.1

CERTIFICATION

I, W. Austin Lewis, IV, certify that:

1.             I have reviewed this quarterly report on Form 10-Q of PAID, INC.;

2.             Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.             Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4.             I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f)) for the Registrant and have:

(a)       Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)       Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)        Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)       Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5.             I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of Registrant’s board of directors (or persons performing the equivalent functions):

(a)       All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information;

(b)       Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

Date: August 15, 2022

/s/ W. Austin Lewis, IV

W. Austin Lewis, IV, Chief Executive Officer, Chief Financial Officer

(Principal Financial and Accounting Officer)

EX-32

EXHIBIT 32

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of PAID, INC. (the “Company”) on Form 10-Q for the quarter ended June 30, 2022 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, in their capacities as CEO and CFO of the Company, certifies, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

1.             The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.             The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ W. Austin Lewis, IV
W. Austin Lewis, IV, Chief Executive Officer, Chief Financial Officer

August 15, 2022

XML

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2022	Aug. 15, 2022
Document Information [Line Items]
Entity Central Index Key	0001017655
Entity Registrant Name	PAID INC
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2022
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2022
Entity File Number	0-28720
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	73-1479833
Entity Address, Address Line One	225 Cedar Hill Street
Entity Address, City or Town	Marlborough
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	01752
City Area Code	617
Local Phone Number	861-6050
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		7,786,284

XML

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($)	Jun. 30, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 3,212,244	$ 2,839,687
Accounts receivable, net	292,854	215,109
Prepaid expenses and other current assets	74,350	164,823
Total current assets	3,579,448	3,219,619
Property and equipment, net	32,195	40,493
Intangible assets, net	2,963,111	3,175,198
Operating lease right-of-use assets	42,569	61,040
Total assets	6,617,323	6,496,350
Current liabilities:
Accounts payable	2,383,722	2,300,509
Accrued expenses	421,212	376,387
Contract liabilities	12,715	11,154
Operating lease obligations – current portion	36,972	36,123
Total current liabilities	2,854,621	2,724,173
Long-term liabilities:
Operating lease obligations – net of current portion	5,274	25,187
Deferred tax liability, net	824,180	838,312
Total liabilities	3,684,075	3,587,672
Commitments and contingencies
Shareholders' equity:
Common stock, $0.001 par value, 25,000,000 shares authorized; 7,820,124 shares issued and 7,786,284 shares outstanding at June 30, 2022, 7,807,103 shares issued and 7,773,263 shares outstanding at December 31, 2021	7,820	7,807
Additional paid-in capital	72,751,200	72,691,201
Accumulated other comprehensive income	535,079	590,067
Accumulated deficit	(70,303,004)	(70,322,550)
Common stock in treasury, at cost, 33,840 shares at June 30, 2022 and December 31, 2021	(57,847)	(57,847)
Total shareholders' equity	2,933,248	2,908,678
Total liabilities and shareholders' equity	6,617,323	6,496,350
Series A Preferred Stock [Member]
Shareholders' equity:
Series A Preferred stock, $0.001 par value, 5,000,000 shares authorized; no shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively	$ 0	$ 0

XML

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares	Jun. 30, 2022	Dec. 31, 2021
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	25,000,000	25,000,000
Common stock, shares issued (in shares)	7,820,124	7,807,103
Common stock, shares outstanding (in shares)	7,786,284	7,773,263
Treasury Stock (in shares)	33,840	33,840
Series A Preferred Stock [Member]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0

XML

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Revenue	$ 4,535,665	$ 4,015,810	$ 8,145,366	$ 7,528,583
Cost of revenues	3,513,888	3,082,761	6,325,097	5,716,519
Gross profit	1,021,777	933,049	1,820,269	1,812,064
Operating expenses:
Salaries and related	442,796	453,274	901,305	883,449
General and administrative	299,504	240,236	598,906	483,401
Share-based compensation	41,916	144,201	60,012	407,814
Amortization of other intangible assets	78,472	125,146	160,511	246,541
Total operating expenses	862,688	962,857	1,720,734	2,021,205
Income (loss) from operations	159,089	(29,808)	99,535	(209,141)
Provision for income taxes	79,089	556	79,989	956
Net income (loss)	$ 80,000	$ (30,364)	$ 19,546	$ (210,097)
Basic income (loss) per share (in dollars per share)	$ 0.01	$ 0	$ 0	$ (0.03)
Basic weighted-average shares outstanding (in shares)	7,775,266	7,759,142	7,774,270	7,110,755
Diluted income (loss) per share (in dollars per share)	$ 0.01	$ 0	$ 0	$ (0.03)
Weighted average number of common shares outstanding - diluted (in shares)	7,801,262	7,759,142	7,804,144	7,110,755
Condensed consolidated statements of comprehensive income (loss):
Net income (loss)	$ 80,000	$ (30,364)	$ 19,546	$ (210,097)
Other comprehensive income (loss):
Foreign currency translation adjustments	(93,288)	46,026	(54,988)	86,538
Comprehensive income (loss)	$ (13,288)	$ 15,662	$ (35,442)	$ (123,559)

XML

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Cash flows from operating activities:
Net income (loss)	$ 19,546	$ (210,097)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	168,219	259,919
Amortization of operating lease right-of-use assets	17,656	16,423
Share-based compensation	60,012	407,814
Provision for bad debt	13,500	0
Changes in assets and liabilities:
Accounts receivable	(94,252)	(45,904)
Prepaid expenses and other current assets	89,330	137,899
Accounts payable	120,563	(39,938)
Accrued expenses	49,880	266,433
Contract liabilities	1,771	1,813
Operating lease obligations	(18,252)	(17,030)
Net cash provided by operating activities	427,973	777,332
Cash flows from investing activities:
Purchase of property and equipment	0	(1,120)
Net cash used in investing activities	0	(1,120)
Cash flows from financing activities:
Payments on finance leases	0	(2,907)
Net cash used in financing activities	0	(2,907)
Effect of exchange rate changes on cash and cash equivalents	(55,416)	49,009
Net change in cash and cash equivalents	372,557	822,314
Cash and cash equivalents, beginning of period	2,839,687	1,644,210
Cash and cash equivalents, end of period	3,212,244	2,466,524
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Income taxes	1,356	956
Interest	0	86
SUPPLEMENTAL DISCLOSURES OF NON-CASH ITEMS
Issuance of common shares in settlement of accrued expenses	$ 0	$ 2,005,500

XML

Condensed Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - USD ($)	Common Stock [Member]	Deferred Compensation, Share-Based Payments [Member]	Additional Paid-in Capital [Member]	AOCI Attributable to Parent [Member]	Retained Earnings [Member]	Treasury Stock [Member]	Total
Balance (in shares) at Dec. 31, 2020	6,489,004					(33,840)
Balance at Dec. 31, 2020	$ 6,489	$ 2,005,500	$ 70,083,486	$ 570,761	$ (69,625,790)	$ (57,847)	$ 2,982,599
Foreign currency translation adjustments	0	0	0	40,512	0	0	40,512
Share-based compensation expense	$ 0	0	24,863	0	0	$ 0	24,863
Issuance of common stock for accrued bonus and compensation (in shares)	1,300,000					0
Issuance of common stock for accrued bonus and compensation	$ 1,300	(2,005,500)	2,242,950	0	0	$ 0	238,750
Net income (loss)	$ 0	0	0	0	(179,733)	$ 0	(179,733)
Balance (in shares) at Mar. 31, 2021	7,789,004					(33,840)
Balance at Mar. 31, 2021	$ 7,789	0	72,351,299	611,273	(69,805,523)	$ (57,847)	3,106,991
Balance (in shares) at Dec. 31, 2020	6,489,004					(33,840)
Balance at Dec. 31, 2020	$ 6,489	2,005,500	70,083,486	570,761	(69,625,790)	$ (57,847)	2,982,599
Foreign currency translation adjustments							86,538
Net income (loss)							(210,097)
Balance (in shares) at Jun. 30, 2021	7,807,103					(33,840)
Balance at Jun. 30, 2021	$ 7,807	0	72,495,482	657,299	(69,835,887)	$ (57,847)	3,266,854
Balance (in shares) at Mar. 31, 2021	7,789,004					(33,840)
Balance at Mar. 31, 2021	$ 7,789	0	72,351,299	611,273	(69,805,523)	$ (57,847)	3,106,991
Foreign currency translation adjustments	0	0	0	46,026	0	0	46,026
Share-based compensation expense	$ 0	0	104,201	0	0	$ 0	104,201
Issuance of common stock for accrued bonus and compensation (in shares)	18,099					0
Issuance of common stock for accrued bonus and compensation	$ 18	0	39,982	0	0	$ 0	40,000
Net income (loss)	$ 0	0	0	0	(30,364)	$ 0	(30,364)
Balance (in shares) at Jun. 30, 2021	7,807,103					(33,840)
Balance at Jun. 30, 2021	$ 7,807	$ 0	72,495,482	657,299	(69,835,887)	$ (57,847)	3,266,854
Balance (in shares) at Dec. 31, 2021	7,807,103					(33,840)
Balance at Dec. 31, 2021	$ 7,807		72,691,201	590,067	(70,322,550)	$ (57,847)	2,908,678
Foreign currency translation adjustments	0		0	38,300	0	0	38,300
Share-based compensation expense	0		18,096	0	0	0	18,096
Net income (loss)	$ 0		0	0	(60,454)	$ 0	(60,454)
Balance (in shares) at Mar. 31, 2022	7,807,103					(33,840)
Balance at Mar. 31, 2022	$ 7,807		72,709,297	628,367	(70,383,004)	$ (57,847)	2,904,620
Balance (in shares) at Dec. 31, 2021	7,807,103					(33,840)
Balance at Dec. 31, 2021	$ 7,807		72,691,201	590,067	(70,322,550)	$ (57,847)	2,908,678
Foreign currency translation adjustments							(54,988)
Net income (loss)							19,546
Balance (in shares) at Jun. 30, 2022	7,820,124					(33,840)
Balance at Jun. 30, 2022	$ 7,820		72,751,200	535,079	(70,303,004)	$ (57,847)	2,933,248
Balance (in shares) at Mar. 31, 2022	7,807,103					(33,840)
Balance at Mar. 31, 2022	$ 7,807		72,709,297	628,367	(70,383,004)	$ (57,847)	2,904,620
Foreign currency translation adjustments	0		0	(93,288)	0	0	(93,288)
Share-based compensation expense	$ 0		16,916	0	0	$ 0	16,916
Issuance of common stock for accrued bonus and compensation (in shares)	13,021					0
Issuance of common stock for accrued bonus and compensation	$ 13		24,987	0	0	$ 0	25,000
Net income (loss)	$ 0		0	0	80,000	$ 0	80,000
Balance (in shares) at Jun. 30, 2022	7,820,124					(33,840)
Balance at Jun. 30, 2022	$ 7,820		$ 72,751,200	$ 535,079	$ (70,303,004)	$ (57,847)	$ 2,933,248

XML

Note 1 - Organization and Significant Accounting Policies

6 Months Ended

Jun. 30, 2022

Notes to Financial Statements

Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block]

Note 1. Organization and Significant Accounting Policies

ShipTime Canada Inc. (“ShipTime”) has developed a SaaS-based application, which focuses on the small and medium business segments. This offering allows members to quote, process, generate labels, dispatch and track courier and LTL shipments all from a single interface. The application provides customers with a choice of today’s leading couriers and freight carriers all with discounted pricing allowing members to save on every shipment. ShipTime can also be integrated into on-line shopping carts to facilitate sales via e-commerce. We actively sell directly to small and medium businesses and through long standing partnerships with selected associations throughout Canada. 

PAID, Inc. (“PAID”, the “Company”, “we”, “us”, or “our”) has developed AuctionInc, which 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 product has 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.

BeerRun Software is a brewery management and Alcohol and Tobacco Tax and Trade Bureau tax reporting software. Small craft brewers can utilize the product to manage brewery schedules, inventory, packaging, sales and purchasing. Tax reporting can be processed with a single click and is fully customizable by state or providence. The software is designed to integrate with QuickBooks accounting platforms by using our powerful sync engine. We currently offer two versions of the software BeerRun and BeerRun Light which excludes some of the enhanced features of BeerRun without disrupting the core functionality of the software.

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 operated 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.

General Presentation and Basis of Consolidated Financial Statements

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), and with the rules and regulations of the Securities and Exchange Commission ("SEC") regarding interim financial reporting. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the Company's audited consolidated financial statements and notes thereto included in the Annual Report on Form 10-K for the year ended December 31, 2021 that was filed on March 31, 2022.

In the opinion of management, the Company has prepared the accompanying unaudited condensed consolidated financial statements on the same basis as its audited consolidated financial statements, and these unaudited condensed consolidated financial statements include all adjustments, consisting of normal recurring adjustments necessary for a fair presentation of the results of the interim periods presented. The operating results for the interim periods presented are not necessarily indicative of the results expected for the full year 2022.

Liquidity and Management’s Plans

At June 30, 2022, the Company reported cash and cash equivalents of $3,212,244 and net working capital of $724,827 and reported cash flows from operations of $427,973 for the six months ended June 30, 2022. The Company has reported an operating income of $19,546 for the six months ended June 30, 2022 and has an accumulated deficit of $70,303,004 at June 30, 2022.

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. In addition, management continues to explore opportunities and has organized additional resources to monetize its patents. However, 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 continues to 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 2023 and will have a positive impact on the Company for the foreseeable future.

Principles of Consolidation

The condensed consolidated financial statements include the accounts of PAID, Inc. and its wholly owned subsidiaries, PAID Run, LLC and ShipTime Canada, Inc. All intercompany accounts and transactions have been eliminated.

Foreign Currency

The currency of ShipTime, the Company’s international subsidiary, is in Canadian dollars. Foreign currency denominated assets and liabilities are translated into U.S. dollars using the exchange rates in effect at June 30, 2022 and December 31, 2021. Results of operations and cash flows are translated using the average exchange rates throughout the period. The effect of exchange rate fluctuations on translation of assets and liabilities is included as a separate component of shareholders’ equity in accumulated other comprehensive income.

Geographic Concentrations

The Company conducts business in the U.S. and Canada. For customers headquartered in their respective countries, for the three months ended June 30, 2022, the Company derived approximately 100% of its revenues from Canada and 0% from the U.S. compared to 99% from Canada and 1% from the U.S for the same period in 2021. The Company derived approximately 99% of its revenues from Canada and 1% from the U.S. during the three and six months ended June 30, 2022 and 2021.

At June 30, 2022, the Company maintained 100% of its property and equipment net of accumulated depreciation in Canada.

Right of Use Assets

A right-of-use asset represents a lessee’s right to use a leased asset for the term of the lease. Our right-of-use assets generally consist of an operating lease for a building.

Right-of-use assets are measured initially at the present value of the lease payments, plus any lease payments made before a lease began and any initial direct costs, such as commissions paid to obtain a lease.

Right-of-use assets are subsequently measured at the present value of the remaining lease payments, adjusted for incentives, prepaid or accrued rent, and any initial direct costs not yet expensed.

Long-Lived Assets

The Company reviews the carrying values of its long-lived assets for possible impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. 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 and six months ended June 30, 2022 and 2021. 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.

Revenue Recognition

The Company generates revenue principally from fees for coordinating shipping services, sales of shipping calculator subscriptions, brewery management software subscriptions, merchant processing services and client services.

Nature of Goods and Services

For label generation service revenues, the Company recognizes revenue when a customer has successfully prepared a shipping label and scheduled a pickup. Customers with pickups after the end of the reporting period are recorded as contract liabilities on the condensed consolidated balance sheets. 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 shipping calculator revenues and brewery management software revenues, the Company recognizes subscription revenue on a monthly basis. Shipping calculator customers’ renewal dates are based on their date of installation and registration of the shipping calculator line of products. The timing of the revenue recognition and cash collection may vary within a given quarter and the deposits for future services are recorded as contract liabilities on the condensed consolidated balance sheets. Brewery management software subscribers are billed monthly at the first of the month. All payments are made via credit card for the following month.

Merchant processing revenue consists of fees a seller pays us to process their payment transactions and is recognized upon authorization of a transaction. Revenue is recognized net of estimated refunds, which are reversals of transactions initiated by sellers. We act as the merchant of record for our sellers, which puts us in their shoes with respect to card networks and puts the risk for refunds and chargebacks on us. The gross transaction fees collected from sellers is recognized as revenue as we are the primary obligor to the seller and are responsible for processing the payment, have latitude in establishing pricing with respect to the sellers and other terms of service, have sole discretion in selecting the third party to perform the settlement, and assume the credit risk for the transaction processed.

Revenue Disaggregation

The Company operates in five reportable segments (see below).

Performance Obligations

At contract inception, an assessment of the goods and services promised in the contracts with customers is performed and a performance obligation is identified for each distinct promise to transfer to the customer a good or service (or bundle of goods or services). To identify the performance obligations, the Company considers all of the goods or services promised in the contract regardless of whether they are explicitly stated or are implied by customary business practices. Revenue is recognized when the performance obligation has been met, which is when the customer has successfully prepared a shipping label and scheduled a pickup for shipping coordination and label generation services. The Company considers control to have transferred at that time because the Company has a present right to payment at that time, the Company has provided the shipping label, and the customer is able to direct the use of, and obtain substantially all of the remaining benefits from the shipping label.

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

Customers of PaidPayments receive a merchant identification number which allows them to process credit card transactions. Once the transaction is approved, the funds are disbursed in an overnight feed and the Company has met its performance obligation.

The Company has no shipping and handling activities related to contracts with customers.

Revenues are recognized net of any taxes collected from customers, which are subsequently remitted to government authorities.

Significant Payment Terms

Pursuant to the Company’s contracts with its customers, amounts are collected up front primarily through credit/debit card transactions. The Company has offered to its customers consolidated payments which are billed weekly and are paid with a credit card on file. Accordingly, the Company determined that its contracts with customers do not include extended payment terms or a significant financing component.

Variable Consideration

In some cases, the nature of the Company’s contracts may give rise to variable consideration, including rebates and cancellations or other similar items that generally decrease the transaction price.

Variable consideration is estimated at the most likely amount that is expected to be earned. Estimated amounts are included in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. Estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of the anticipated performance and all information (historical, current and forecasted) that is reasonably available.

Revenues are recorded net of variable consideration, such as rebates, refunds, and cancellations.

Warranties

The Company’s products and services are provided on an “as is” basis and no warranties are included in the contracts with customers. Also, the Company does not offer separately priced extended warranty or product maintenance contracts.

Contract Assets

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 $292,854 and $215,109 as of June 30, 2022 and December 31, 2021, respectively. The Company has no customer that makes up 10% of the accounts receivable balance at June 30, 2022. 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.

Contract Liabilities (Deferred Revenue)

Contract liabilities are recorded when cash payments are received in advance of the Company’s performance (including rebates). Contract liabilities were $12,715 and $11,154 at June 30, 2022 and December 31, 2021, respectively. During the six months ended June 30, 2022, the Company recognized revenues of $11,154, related to contract liabilities outstanding at the beginning of the year.

Earnings (Loss) Per Common Share

Basic earnings (loss) per share represent income (loss) available to common shareholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings (loss) per share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income (loss) that would result from the assumed issuance. 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 earnings (loss) per share for the three- and six-month periods ended June 30, 2021 because they would reduce the reported loss per share and therefore have an anti-dilutive effect.

For the three months ended June 30, 2022 and 2021 and the six months ended June 30, 2022 and 2021, there were approximately 0 and 36,000 and 0 and 37,000, respectively, 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 earnings (loss) per common share and diluted earnings (loss) per common share computation for the three and six months ended June 30, 2022 and 2021.

	Three Months Ended June 30, 2022		Three Months Ended June 30, 2021
Numerator:
Net income (loss)	$	80,000	$	(30,364	)
Denominator:
Basic weighted-average shares outstanding		7,775,266		7,759,142
Effect of dilutive securities		25,996		-
Diluted weighted-average shares outstanding		7,801,262		7,759,142
Basic income (loss) per share	$	0.01	$	-
Diluted income (loss) per share	$	0.01	$	-

	Six Months Ended June 30, 2022		Six Months Ended June 30, 2021
Numerator:
Net income (loss)	$	19,546	$	(210,097	)
Denominator:
Basic weighted-average shares outstanding		7,774,270		7,110,755
Effect of dilutive securities		29,874		-
Diluted weighted-average shares outstanding		7,804,144		7,110,755
Basic income (loss) per share	$	-	$	(0.03	)
Diluted income (loss) per share	$	-	$	(0.03	)

Segment Reporting

The Company reports information about segments of its business in its annual consolidated financial statements and reports selected segment information in its quarterly reports issued to shareholders. The Company also reports on its entity-wide disclosures about the products and services it provides and reports revenues and its major customers. The Company’s five reportable segments are managed separately based on fundamental differences in their operations. At June 30, 2022, the Company operated in the following five reportable segments:

a.	Client services;
b.	Shipping calculator services;
c.	Brewery management software;
d.	Merchant processing services;
e.	Shipping coordination and label generation services; and
f.	Corporate operations

The Company evaluates performance and allocates resources based upon operating income. The accounting policies of the reportable segments are the same as those described in this summary of significant accounting policies. The Company’s chief operating decision maker is the Chief Executive Officer/Chief Financial Officer.

The following table compares total revenue for the periods indicated.

	Three Months Ended				Six Months Ended
	June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021
Client services	$	477	$	226	$	757	$	1,509
Shipping calculator services		987		5,856		6,531		11,719
Brewery management software		8,356		16,025		17,731		35,225
Merchant processing services		4,445		14,453		16,498		26,978
Shipping coordination and label generation services		4,521,400		3,979,250		8,103,849		7,453,152
Total revenues	$	4,535,665	$	4,015,810	$	8,145,366	$	7,528,583

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

	Three Months Ended						Six Months Ended
	June 30, 2022			June 30, 2021			June 30, 2022			June 30, 2021
Client services	$	365		$	226		$	645		$	1,195
Shipping calculator services		(1,076	)		3,406			2,489			5,417
Brewery management software		(19,323	)		6,386			(24,066	)		18,018
Merchant processing services		(4,060	)		5,704			(21	)		10,326
Shipping coordination and label generation services		310,378			65,025			449,279			(16,802	)
Corporate operations		(127,195	)		(110,555	)		(328,791	)		(227,295	)
Total income (loss) from operations	$	159,089		$	(29,808	)	$	99,535		$	(209,141	)

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.

Recent Accounting Pronouncements

There were no new accounting pronouncements issued by the FASB during the period that would apply to the Company and would have a material impact on its financial position or results of operations.

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Note 2 - Accrued Expenses

6 Months Ended

Jun. 30, 2022

Notes to Financial Statements

Accounts Payable and Accrued Liabilities Disclosure [Text Block]

Note 2. Accrued Expenses

Accrued expenses are comprised of the following:

	June 30, 2022 (unaudited)		December 31, 2021
Payroll and related costs	$	36,357	$	58,182
Professional and consulting		-		26,070
Royalties		47,803		47,803
Accrued cost of revenues		304,740		212,020
Sales tax		31,902		31,902
Other		410		410
Total	$	421,212	$	376,387

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Note 3 - Intangible Assets

6 Months Ended

Jun. 30, 2022

Notes to Financial Statements

Intangible Assets Disclosure [Text Block]

Note 3. Intangible Assets

The Company holds several patents for the real-time calculation of shipping costs for items purchased through online auctions using a zip code as a destination location indicator. It includes shipping charge calculations across multiple carriers and accounts for additional characteristics of the item being shipped, such as weight, special packaging or handling, and insurance costs. These patents help facilitate rapid and accurate estimation of shipping costs across multiple shipping carriers and also include real-time calculation of shipping.

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

At June 30, 2022, intangible assets consisted of the following:

	Patents			Trade Name			Technology & Software			Customer Relationships			Total
Gross carrying amount	$	16,000		$	831,922		$	615,053		$	4,883,789		$	6,346,764
Accumulated amortization		(16,000	)		(831,922	)		(615,053	)		(1,920,678	)		(3,383,653	)
	$	-		$	-		$	-		$	2,963,111		$	2,963,111

At December 31, 2021, intangible assets consisted of the following:

	Patents			Trade Name			Technology & Software			Customer Relationships			Total
Gross carrying amount	$	16,000		$	846,186		$	624,162		$	4,963,860		$	6,450,208
Accumulated amortization		(16,000	)		(843,240	)		(624,162	)		(1,791,608	)		(3,275,010	)
	$	-		$	2,946		$	-		$	3,172,252		$	3,175,198

Amortization expense of intangible assets for the three months ended June 30, 2022 and 2021 was $78,472 and $125,146, respectively, and for the six months ended June 30, 2022 and 2021 was $160,511 and $246,541, respectively.

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Note 4 - Commitments and Contingencies

6 Months Ended

Jun. 30, 2022

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

Note 4. Commitments and Contingencies

Legal Matters

In the normal course of business, the Company periodically becomes involved in litigation and disputes. During 2021, the Company was notified of a dispute related to its non-renewal of the employment agreement with Mr. Allan Pratt, the Company's former President, CEO and Chairman. In February 2020, the Company did not renew Mr. Pratt’s employment agreement, but Mr. Pratt alleges in a court in Canada that the Company terminated him and that the Company owes him a severance payment. Around the same time that Mr. Pratt’s employment term expired, the Company’s Board of Directors voted to reduce the size of the Board from five to three, and Mr. Pratt and Mr. Austin Lewis, then 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.

Indemnities and Guarantees

The Company has made certain indemnities and guarantees, under which it may be required to make payments to a guaranteed or indemnified party, in relation to certain actions or transactions. The Company indemnifies its directors, officers, employees and agents, as permitted under the laws of the State of Delaware. In connection with its facility lease, the Company has agreed to indemnify its lessor for certain claims arising from the use of the facilities. The duration of the guarantees and indemnities varies and is generally tied to the life of the agreement. These guarantees and indemnities do not provide for any limitation of the maximum potential future payments the Company could be obligated to make. Historically, the Company has not been obligated nor incurred any payments for these obligations and, therefore, no liabilities have been recorded for these indemnities and guarantees in the accompanying condensed consolidated balance sheets.

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Note 5 - Shareholders' Equity

6 Months Ended

Jun. 30, 2022

Notes to Financial Statements

Shareholders' Equity and Share-Based Payments [Text Block]

Note 5. Shareholders’ Equity

Preferred Stock

The Company’s amended Certificate of Incorporation authorizes the issuance of 20,000,000 shares of blank-check preferred stock at $0.001 par value. The Board of Directors will be authorized to fix the designations, rights, preferences, powers and limitations of each series of the preferred stock.

The Company filed a Certificate of Designations effective on December 30, 2016, which sets aside 5,000,000 shares of Preferred Stock as Series A Preferred Stock. The Series A Preferred Stock carries a coupon payment obligation of 1.5% of the liquidation value per share ($3.03) per year in cash or additional Series A Preferred Stock, calculated by taking the 30-day average closing price for a share of common stock for the month immediately preceding the coupon payment date which is made annually. The Series A Preferred Stock has no voting or conversion rights. If purchased, redeemed, or otherwise acquired (other than conversion), the preferred stock may be reissued. As of June 30, 2022 and December 31, 2021, there are no outstanding shares of Series A Preferred Stock.

Common 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. The Company made available to its ShipTime Canada exchangeable preferred shareholders the one-time option to convert existing book entry preferred shares and exchangeable rights to preferred shares into PAID common shares. As a result, certain ShipTime exchangeable shareholders exercised their rights to receive 1,461,078 shares of PAID Series A Preferred Stock for 1,461,078 shares of PAID common stock. At the same time, the Company made available to its Series A Preferred Stock shareholder the option to exchange existing Series A preferred shares for PAID common shares. The exchange was offered on a one-to-one basis. Shareholders holding 1,015,851 shares of Series A Preferred Stock exchanged such shares for 1,015,851 shares of PAID common stock. Furthermore, because of the amended exchange rights, the Company reflected an additional exchange of PAID Series A Preferred Stock shares totaling 2,089,298 to PAID common shares, representing the additional amount of PAID common shares that will be issued to the ShipTime shareholders upon the exchange. During 2020, two shareholders sold 500 ShipTime exchangeable shares which were subsequently exchanged for 178,000 common shares. In total, the Company has reserved for future issuance of 2,213,608 shares of PAID common stock with respect to the remaining 6,218 exchangeable shares to be issued as a result of the ShipTime acquisition which are considered issued and outstanding as of June 30, 2022 for financial reporting purposes.

On March 29, 2021, the Company's Board of Directors authorized the issuance of 1,050,000 bonus shares of PAID common stock to the CEO/CFO for services rendered during 2019 and 2020. This bonus was valued at $2,005,500 based on the closing price of the Company's common stock at March 29, 2021 and was recorded in accrued common stock bonus in shareholders’ equity at December 31, 2020. Also, at March 29, 2021, the Company’s Board of Directors authorized the issuance of an additional 250,000 shares to the CEO/CFO as a one-time sign-on bonus resulting in a share-based compensation expense of $477,500, which was recognized ratably during 2021 as the bonus shares were subject to repurchase if the CEO/CFO terminated employment through January 1, 2022. All of these shares were issued on March 31, 2021. During the second quarter of 2021, the Company issued 18,099 shares valued at $2.21 per share for a total of $40,000 to two employees as bonus compensation which is included in share-based compensation in the condensed statements of operations and comprehensive income (loss) for the three and six months ended June 30, 2021. During the second quarter of 2022, the Company issued 13,021 shares valued at $1.92 per share for a total share-based compensation expense of $25,000 to one employee as bonus compensation which is included in share-based compensation in the condensed consolidated statements of operations and comprehensive income (loss) for the three and six months ended June 30, 2022. The share were issued pursuant to the exemption for registration provided by Section 4(a)(2) of the Securities Act and Rule 506 of the SEC’s Regulation D thereunder.

Share-based Incentive Plans

On March 23, 2018, the Board of Directors voted to approve the 2018 Stock Option Plan which reserves 450,000 non-qualified stock options to be granted to employees. The Company has three additional stock option plans that include both incentive and non-qualified stock options to be granted to certain eligible employees, non-employee directors, or consultants of the Company. On November 10, 2020, the board voted to increase the 2018 Stock Option Plan from 450,000 options to 900,000 options. For the year ended December 31, 2020, the Company granted 105,000 stock options to employees, consultants and directors. During 2021, the Company issued 10,000 stock options to one employee. These options have a three-year vesting schedule with one-third vesting immediately, one-third vesting in 18 months and the final one-third vesting in 36 months, they expire if not exercised in ten years from the grant date, and their exercise price is $1.91 per share.

For the three- and six-month periods ended June 30, 2022, the Company recorded $16,916 and $35,012, respectively, of share-based compensation expense related to the vesting of applicable options granted in 2021 and prior years.  For the three-and six-month periods ended June 30, 2021, the Company recorded $24,618 and $49,481, respectively, of share-based compensation expense related to the vesting of applicable options granted in 2021 and prior years.    

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Note 6 - Leases

6 Months Ended

Jun. 30, 2022

Notes to Financial Statements

Lessee, Operating Leases and Finance Lease [Text Block]

Note 6. Leases

We have an operating lease for our corporate offices in Canada and finance leases for furniture and equipment which expired in June 2021. Our leases have remaining lease terms of thirteen months to fourteen months, and our primary operating leases include options to extend the leases for four years. Future renewal options that are not likely to be executed as of the balance sheet date are excluded from right-of-use assets and related lease liabilities.

We report operating leased assets, as well as operating lease current and noncurrent obligations on our balance sheets for the right to use the building in our business.

Generally, interest rates are stated in our leases for equipment. When no interest rate is stated in a lease, however, we review the interest rates implicit in our recent finance leases to estimate our incremental borrowing rate. We determine the rate implicit in a lease by using the most recent finance lease rate, or other method we think most closely represents our incremental borrowing rate.

The components of lease expense were as follows:

	Three Months Ended June 30, 2022		Three Months Ended June 30, 2021
Operating lease cost	$	10,015	$	10,407
Finance lease cost:
Amortization of leased assets	$	-	$	2,816
Interest on lease liabilities		-		29
Total finance lease cost	$	-	$	2,845

	Six Months Ended June 30, 2022		Six Months Ended June 30, 2021
Operating lease cost	$	20,108	$	20,502
Finance lease cost:
Amortization of leased assets	$	-	$	5,557
Interest on lease liabilities		-		86
Total finance lease cost	$	-	$	5,643

Supplemental cash flow information related to leases was as follows:

	Six Months Ended June, 2022		Six Months Ended June 30, 2021
Cash paid for amounts included in leases:
Operating cash flows from operating leases	$	20,704	$	21,111
Operating cash flows from finance leases	$	-	$	86
Financing cash flows from finance leases	$	-	$	2,907
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	-	$	-
Finance leases	$	-	$	-

Supplemental balance sheet information related to leases was as follows:

	June 30, 2022			December 31, 2021
Operating leases:
Operating lease right-of-use assets	$	42,569		$	61,040
Current portion of operating lease obligations	$	36,972		$	36,123
Operating lease obligations, net of current portion		5,274		$	25,187
Total operating lease liabilities	$	42,246		$	61,310
Finance leases:
Property and equipment, at cost	$	53,558		$	53,885
Accumulated depreciation		(53,558	)	$	(53,885	)
Property and equipment, net	$	-		$	-
Current portion of finance lease obligations	$	-		$	-
Finance lease obligations, net of current portion		-			-
Total finance lease liabilities	$	-		$	-

	June 30, 2022			December 31, 2021
Weighted Average Remaining Lease Term
Operating lease (in years)		1.1			1.6
Finance leases		-			-
Weighted Average Discount Rate
Operating lease		9.0	%		9.0	%
Finance leases		-	%		-	%

A summary of future minimum payments under non-cancellable operating lease commitment as of June 30, 2022 is as follows:

Years ending December 31,	Total
2022 (remaining portion)		20,243
2023		25,036
Total lease liabilities	$	45,279
Less amount representing interest		(3,033	)
Total		42,246
Less current portion		(36,972	)
	$	5,274

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Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2022

Accounting Policies [Abstract]

Basis of Accounting, Policy [Policy Text Block]

General Presentation and Basis of Consolidated Financial Statements

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), and with the rules and regulations of the Securities and Exchange Commission ("SEC") regarding interim financial reporting. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the Company's audited consolidated financial statements and notes thereto included in the Annual Report on Form 10-K for the year ended December 31, 2021 that was filed on March 31, 2022.

In the opinion of management, the Company has prepared the accompanying unaudited condensed consolidated financial statements on the same basis as its audited consolidated financial statements, and these unaudited condensed consolidated financial statements include all adjustments, consisting of normal recurring adjustments necessary for a fair presentation of the results of the interim periods presented. The operating results for the interim periods presented are not necessarily indicative of the results expected for the full year 2022.

Liquidity and Management’s Plans, Policy [Policy Text Block]

Liquidity and Management’s Plans

At June 30, 2022, the Company reported cash and cash equivalents of $3,212,244 and net working capital of $724,827 and reported cash flows from operations of $427,973 for the six months ended June 30, 2022. The Company has reported an operating income of $19,546 for the six months ended June 30, 2022 and has an accumulated deficit of $70,303,004 at June 30, 2022.

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. In addition, management continues to explore opportunities and has organized additional resources to monetize its patents. However, 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 continues to 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 2023 and will have a positive impact on the Company for the foreseeable future.

Consolidation, Policy [Policy Text Block]

Principles of Consolidation

The condensed consolidated financial statements include the accounts of PAID, Inc. and its wholly owned subsidiaries, PAID Run, LLC and ShipTime Canada, Inc. All intercompany accounts and transactions have been eliminated.

Foreign Currency Transactions and Translations Policy [Policy Text Block]

Foreign Currency

The currency of ShipTime, the Company’s international subsidiary, is in Canadian dollars. Foreign currency denominated assets and liabilities are translated into U.S. dollars using the exchange rates in effect at June 30, 2022 and December 31, 2021. Results of operations and cash flows are translated using the average exchange rates throughout the period. The effect of exchange rate fluctuations on translation of assets and liabilities is included as a separate component of shareholders’ equity in accumulated other comprehensive income.

Concentration Risk, Credit Risk, Policy [Policy Text Block]

Geographic Concentrations

The Company conducts business in the U.S. and Canada. For customers headquartered in their respective countries, for the three months ended June 30, 2022, the Company derived approximately 100% of its revenues from Canada and 0% from the U.S. compared to 99% from Canada and 1% from the U.S for the same period in 2021. The Company derived approximately 99% of its revenues from Canada and 1% from the U.S. during the three and six months ended June 30, 2022 and 2021.

At June 30, 2022, the Company maintained 100% of its property and equipment net of accumulated depreciation in Canada.

Lessee, Leases [Policy Text Block]

Right of Use Assets

A right-of-use asset represents a lessee’s right to use a leased asset for the term of the lease. Our right-of-use assets generally consist of an operating lease for a building.

Right-of-use assets are measured initially at the present value of the lease payments, plus any lease payments made before a lease began and any initial direct costs, such as commissions paid to obtain a lease.

Right-of-use assets are subsequently measured at the present value of the remaining lease payments, adjusted for incentives, prepaid or accrued rent, and any initial direct costs not yet expensed.

Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block]

Long-Lived Assets

The Company reviews the carrying values of its long-lived assets for possible impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. 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 and six months ended June 30, 2022 and 2021. 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.

Revenue [Policy Text Block]

Revenue Recognition

The Company generates revenue principally from fees for coordinating shipping services, sales of shipping calculator subscriptions, brewery management software subscriptions, merchant processing services and client services.

Nature of Goods and Services

For label generation service revenues, the Company recognizes revenue when a customer has successfully prepared a shipping label and scheduled a pickup. Customers with pickups after the end of the reporting period are recorded as contract liabilities on the condensed consolidated balance sheets. 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 shipping calculator revenues and brewery management software revenues, the Company recognizes subscription revenue on a monthly basis. Shipping calculator customers’ renewal dates are based on their date of installation and registration of the shipping calculator line of products. The timing of the revenue recognition and cash collection may vary within a given quarter and the deposits for future services are recorded as contract liabilities on the condensed consolidated balance sheets. Brewery management software subscribers are billed monthly at the first of the month. All payments are made via credit card for the following month.

Merchant processing revenue consists of fees a seller pays us to process their payment transactions and is recognized upon authorization of a transaction. Revenue is recognized net of estimated refunds, which are reversals of transactions initiated by sellers. We act as the merchant of record for our sellers, which puts us in their shoes with respect to card networks and puts the risk for refunds and chargebacks on us. The gross transaction fees collected from sellers is recognized as revenue as we are the primary obligor to the seller and are responsible for processing the payment, have latitude in establishing pricing with respect to the sellers and other terms of service, have sole discretion in selecting the third party to perform the settlement, and assume the credit risk for the transaction processed.

Revenue Disaggregation

The Company operates in five reportable segments (see below).

Performance Obligations

At contract inception, an assessment of the goods and services promised in the contracts with customers is performed and a performance obligation is identified for each distinct promise to transfer to the customer a good or service (or bundle of goods or services). To identify the performance obligations, the Company considers all of the goods or services promised in the contract regardless of whether they are explicitly stated or are implied by customary business practices. Revenue is recognized when the performance obligation has been met, which is when the customer has successfully prepared a shipping label and scheduled a pickup for shipping coordination and label generation services. The Company considers control to have transferred at that time because the Company has a present right to payment at that time, the Company has provided the shipping label, and the customer is able to direct the use of, and obtain substantially all of the remaining benefits from the shipping label.

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

Customers of PaidPayments receive a merchant identification number which allows them to process credit card transactions. Once the transaction is approved, the funds are disbursed in an overnight feed and the Company has met its performance obligation.

The Company has no shipping and handling activities related to contracts with customers.

Revenues are recognized net of any taxes collected from customers, which are subsequently remitted to government authorities.

Significant Payment Terms

Pursuant to the Company’s contracts with its customers, amounts are collected up front primarily through credit/debit card transactions. The Company has offered to its customers consolidated payments which are billed weekly and are paid with a credit card on file. Accordingly, the Company determined that its contracts with customers do not include extended payment terms or a significant financing component.

Variable Consideration

In some cases, the nature of the Company’s contracts may give rise to variable consideration, including rebates and cancellations or other similar items that generally decrease the transaction price.

Variable consideration is estimated at the most likely amount that is expected to be earned. Estimated amounts are included in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. Estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of the anticipated performance and all information (historical, current and forecasted) that is reasonably available.

Revenues are recorded net of variable consideration, such as rebates, refunds, and cancellations.

Warranties

The Company’s products and services are provided on an “as is” basis and no warranties are included in the contracts with customers. Also, the Company does not offer separately priced extended warranty or product maintenance contracts.

Contract Assets

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 $292,854 and $215,109 as of June 30, 2022 and December 31, 2021, respectively. The Company has no customer that makes up 10% of the accounts receivable balance at June 30, 2022. 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.

Contract Liabilities (Deferred Revenue)

Contract liabilities are recorded when cash payments are received in advance of the Company’s performance (including rebates). Contract liabilities were $12,715 and $11,154 at June 30, 2022 and December 31, 2021, respectively. During the six months ended June 30, 2022, the Company recognized revenues of $11,154, related to contract liabilities outstanding at the beginning of the year.

Earnings Per Share, Policy [Policy Text Block]

Earnings (Loss) Per Common Share

Basic earnings (loss) per share represent income (loss) available to common shareholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings (loss) per share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income (loss) that would result from the assumed issuance. 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 earnings (loss) per share for the three- and six-month periods ended June 30, 2021 because they would reduce the reported loss per share and therefore have an anti-dilutive effect.

For the three months ended June 30, 2022 and 2021 and the six months ended June 30, 2022 and 2021, there were approximately 0 and 36,000 and 0 and 37,000, respectively, 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 earnings (loss) per common share and diluted earnings (loss) per common share computation for the three and six months ended June 30, 2022 and 2021.

	Three Months Ended June 30, 2022		Three Months Ended June 30, 2021
Numerator:
Net income (loss)	$	80,000	$	(30,364	)
Denominator:
Basic weighted-average shares outstanding		7,775,266		7,759,142
Effect of dilutive securities		25,996		-
Diluted weighted-average shares outstanding		7,801,262		7,759,142
Basic income (loss) per share	$	0.01	$	-
Diluted income (loss) per share	$	0.01	$	-

	Six Months Ended June 30, 2022		Six Months Ended June 30, 2021
Numerator:
Net income (loss)	$	19,546	$	(210,097	)
Denominator:
Basic weighted-average shares outstanding		7,774,270		7,110,755
Effect of dilutive securities		29,874		-
Diluted weighted-average shares outstanding		7,804,144		7,110,755
Basic income (loss) per share	$	-	$	(0.03	)
Diluted income (loss) per share	$	-	$	(0.03	)

Segment Reporting, Policy [Policy Text Block]

Segment Reporting

The Company reports information about segments of its business in its annual consolidated financial statements and reports selected segment information in its quarterly reports issued to shareholders. The Company also reports on its entity-wide disclosures about the products and services it provides and reports revenues and its major customers. The Company’s five reportable segments are managed separately based on fundamental differences in their operations. At June 30, 2022, the Company operated in the following five reportable segments:

a.	Client services;
b.	Shipping calculator services;
c.	Brewery management software;
d.	Merchant processing services;
e.	Shipping coordination and label generation services; and
f.	Corporate operations

The Company evaluates performance and allocates resources based upon operating income. The accounting policies of the reportable segments are the same as those described in this summary of significant accounting policies. The Company’s chief operating decision maker is the Chief Executive Officer/Chief Financial Officer.

The following table compares total revenue for the periods indicated.

	Three Months Ended				Six Months Ended
	June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021
Client services	$	477	$	226	$	757	$	1,509
Shipping calculator services		987		5,856		6,531		11,719
Brewery management software		8,356		16,025		17,731		35,225
Merchant processing services		4,445		14,453		16,498		26,978
Shipping coordination and label generation services		4,521,400		3,979,250		8,103,849		7,453,152
Total revenues	$	4,535,665	$	4,015,810	$	8,145,366	$	7,528,583

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

	Three Months Ended						Six Months Ended
	June 30, 2022			June 30, 2021			June 30, 2022			June 30, 2021
Client services	$	365		$	226		$	645		$	1,195
Shipping calculator services		(1,076	)		3,406			2,489			5,417
Brewery management software		(19,323	)		6,386			(24,066	)		18,018
Merchant processing services		(4,060	)		5,704			(21	)		10,326
Shipping coordination and label generation services		310,378			65,025			449,279			(16,802	)
Corporate operations		(127,195	)		(110,555	)		(328,791	)		(227,295	)
Total income (loss) from operations	$	159,089		$	(29,808	)	$	99,535		$	(209,141	)

Subsequent Events, Policy [Policy Text Block]

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.

New Accounting Pronouncements, Policy [Policy Text Block]

Recent Accounting Pronouncements

There were no new accounting pronouncements issued by the FASB during the period that would apply to the Company and would have a material impact on its financial position or results of operations.

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Note 1 - Organization and Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2022

Notes Tables

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	Three Months Ended June 30, 2022		Three Months Ended June 30, 2021
Numerator:
Net income (loss)	$	80,000	$	(30,364	)
Denominator:
Basic weighted-average shares outstanding		7,775,266		7,759,142
Effect of dilutive securities		25,996		-
Diluted weighted-average shares outstanding		7,801,262		7,759,142
Basic income (loss) per share	$	0.01	$	-
Diluted income (loss) per share	$	0.01	$	-

	Six Months Ended June 30, 2022		Six Months Ended June 30, 2021
Numerator:
Net income (loss)	$	19,546	$	(210,097	)
Denominator:
Basic weighted-average shares outstanding		7,774,270		7,110,755
Effect of dilutive securities		29,874		-
Diluted weighted-average shares outstanding		7,804,144		7,110,755
Basic income (loss) per share	$	-	$	(0.03	)
Diluted income (loss) per share	$	-	$	(0.03	)

Schedule of Segment Reporting Information, by Segment [Table Text Block]

	Three Months Ended				Six Months Ended
	June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021
Client services	$	477	$	226	$	757	$	1,509
Shipping calculator services		987		5,856		6,531		11,719
Brewery management software		8,356		16,025		17,731		35,225
Merchant processing services		4,445		14,453		16,498		26,978
Shipping coordination and label generation services		4,521,400		3,979,250		8,103,849		7,453,152
Total revenues	$	4,535,665	$	4,015,810	$	8,145,366	$	7,528,583

	Three Months Ended						Six Months Ended
	June 30, 2022			June 30, 2021			June 30, 2022			June 30, 2021
Client services	$	365		$	226		$	645		$	1,195
Shipping calculator services		(1,076	)		3,406			2,489			5,417
Brewery management software		(19,323	)		6,386			(24,066	)		18,018
Merchant processing services		(4,060	)		5,704			(21	)		10,326
Shipping coordination and label generation services		310,378			65,025			449,279			(16,802	)
Corporate operations		(127,195	)		(110,555	)		(328,791	)		(227,295	)
Total income (loss) from operations	$	159,089		$	(29,808	)	$	99,535		$	(209,141	)

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Note 2 - Accrued Expenses (Tables)

6 Months Ended

Jun. 30, 2022

Notes Tables

Schedule of Accrued Liabilities [Table Text Block]

	June 30, 2022 (unaudited)		December 31, 2021
Payroll and related costs	$	36,357	$	58,182
Professional and consulting		-		26,070
Royalties		47,803		47,803
Accrued cost of revenues		304,740		212,020
Sales tax		31,902		31,902
Other		410		410
Total	$	421,212	$	376,387

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Note 3 - Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2022

Notes Tables

Schedule of Finite-Lived Intangible Assets [Table Text Block]

	Patents			Trade Name			Technology & Software			Customer Relationships			Total
Gross carrying amount	$	16,000		$	831,922		$	615,053		$	4,883,789		$	6,346,764
Accumulated amortization		(16,000	)		(831,922	)		(615,053	)		(1,920,678	)		(3,383,653	)
	$	-		$	-		$	-		$	2,963,111		$	2,963,111

	Patents			Trade Name			Technology & Software			Customer Relationships			Total
Gross carrying amount	$	16,000		$	846,186		$	624,162		$	4,963,860		$	6,450,208
Accumulated amortization		(16,000	)		(843,240	)		(624,162	)		(1,791,608	)		(3,275,010	)
	$	-		$	2,946		$	-		$	3,172,252		$	3,175,198

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Note 6 - Leases (Tables)

6 Months Ended

Jun. 30, 2022

Notes Tables

Lease, Cost [Table Text Block]

	Three Months Ended June 30, 2022		Three Months Ended June 30, 2021
Operating lease cost	$	10,015	$	10,407
Finance lease cost:
Amortization of leased assets	$	-	$	2,816
Interest on lease liabilities		-		29
Total finance lease cost	$	-	$	2,845

	Six Months Ended June 30, 2022		Six Months Ended June 30, 2021
Operating lease cost	$	20,108	$	20,502
Finance lease cost:
Amortization of leased assets	$	-	$	5,557
Interest on lease liabilities		-		86
Total finance lease cost	$	-	$	5,643

Cash Flow, Leases, Lessee [Table Text Block]

	Six Months Ended June, 2022		Six Months Ended June 30, 2021
Cash paid for amounts included in leases:
Operating cash flows from operating leases	$	20,704	$	21,111
Operating cash flows from finance leases	$	-	$	86
Financing cash flows from finance leases	$	-	$	2,907
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	-	$	-
Finance leases	$	-	$	-

Balance Sheet, Leases, Lessee [Table Text Block]

	June 30, 2022			December 31, 2021
Operating leases:
Operating lease right-of-use assets	$	42,569		$	61,040
Current portion of operating lease obligations	$	36,972		$	36,123
Operating lease obligations, net of current portion		5,274		$	25,187
Total operating lease liabilities	$	42,246		$	61,310
Finance leases:
Property and equipment, at cost	$	53,558		$	53,885
Accumulated depreciation		(53,558	)	$	(53,885	)
Property and equipment, net	$	-		$	-
Current portion of finance lease obligations	$	-		$	-
Finance lease obligations, net of current portion		-			-
Total finance lease liabilities	$	-		$	-

Weighted Average Remaining Lease Term and Discount Rate [Table Text Block]

	June 30, 2022			December 31, 2021
Weighted Average Remaining Lease Term
Operating lease (in years)		1.1			1.6
Finance leases		-			-
Weighted Average Discount Rate
Operating lease		9.0	%		9.0	%
Finance leases		-	%		-	%

Lessee, Operating Lease, Liability, Maturity [Table Text Block]

Years ending December 31,	Total
2022 (remaining portion)		20,243
2023		25,036
Total lease liabilities	$	45,279
Less amount representing interest		(3,033	)
Total		42,246
Less current portion		(36,972	)
	$	5,274

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Note 1 - Organization and Significant Accounting Policies (Details Textual) - USD ($)	3 Months Ended				6 Months Ended
	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Cash Equivalents, at Carrying Value, Total	$ 3,212,244				$ 3,212,244
Net Working Capital	724,827				724,827
Net Cash Provided by (Used in) Operating Activities, Total					427,973	$ 777,332
Net Income (Loss) Attributable to Parent, Total	80,000	$ (60,454)	$ (30,364)	$ (179,733)	19,546	$ (210,097)
Retained Earnings (Accumulated Deficit), Total	(70,303,004)				$ (70,303,004)		$ (70,322,550)
Number of Reportable Segments					5
Accounts Receivable, after Allowance for Credit Loss, Current, Total	292,854				$ 292,854		215,109
Number of Major Customers					0
Contract with Customer, Liability, Total	$ 12,715				$ 12,715		$ 11,154
Contract with Customer, Liability, Revenue Recognized					$ 11,154
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares)	0		36,000		0	37,000
CANADA
Property and Equipment Net Percentages	100.00%				100.00%
CANADA | Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member]
Concentration Risk, Percentage	100.00%		99.00%		99.00%	99.00%
UNITED STATES | Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member]
Concentration Risk, Percentage	0.00%		1.00%		1.00%	1.00%

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Note 1 - Organization and Significant Accounting Policies - Reconciliation of Basic and Diluted Earnings Per Share (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Net income (loss)	$ 80,000	$ (30,364)	$ 19,546	$ (210,097)
Basic weighted-average shares outstanding (in shares)	7,775,266	7,759,142	7,774,270	7,110,755
Effect of dilutive securities (in shares)	25,996	0	29,874	0
Diluted weighted-average shares outstanding (in shares)	7,801,262	7,759,142	7,804,144	7,110,755
Basic income (loss) per share (in dollars per share)	$ 0.01	$ 0	$ 0	$ (0.03)
Diluted income (loss) per share (in dollars per share)	$ 0.01	$ 0	$ 0	$ (0.03)

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Note 1 - Organization and Significant Accounting Policies - Schedule of Segment Information (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Revenue	$ 4,535,665	$ 4,015,810	$ 8,145,366	$ 7,528,583
Operating income loss	159,089	(29,808)	99,535	(209,141)
Service [Member]
Revenue	477	226	757	1,509
Operating income loss	365	226	645	1,195
Shipping Calculator Services [Member]
Revenue	987	5,856	6,531	11,719
Operating income loss	(1,076)	3,406	2,489	5,417
Brewery Management Software [Member]
Revenue	8,356	16,025	17,731	35,225
Operating income loss	(19,323)	6,386	(24,066)	18,018
Merchant Processing Services [Member]
Revenue	4,445	14,453	16,498	26,978
Operating income loss	(4,060)	5,704	(21)	10,326
Shipping Coordination and Label Generation Services [Member]
Revenue	4,521,400	3,979,250	8,103,849	7,453,152
Operating income loss	310,378	65,025	449,279	(16,802)
Corporate Operations [Member]
Operating income loss	$ (127,195)	$ (110,555)	$ (328,791)	$ (227,295)

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Note 2 - Accrued Expenses - Schedule of Accrued Expenses (Details) - USD ($)	Jun. 30, 2022	Dec. 31, 2021
Payroll and related costs	$ 36,357	$ 58,182
Professional and consulting	0	26,070
Royalties	47,803	47,803
Accrued cost of revenues	304,740	212,020
Sales tax	31,902	31,902
Other	410	410
Total	$ 421,212	$ 376,387

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Note 3 - Intangible Assets (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Amortization of Intangible Assets	$ 78,472	$ 125,146	$ 160,511	$ 246,541

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Note 3 - Intangible Assets - Schedule of Intangible Assets (Details) - USD ($)	Jun. 30, 2022	Dec. 31, 2021
Intangible asset, gross	$ 6,346,764	$ 6,450,208
Accumulated amortizatio	(3,383,653)	(3,275,010)
Finite-Lived Intangible Assets, Net, Ending Balance	2,963,111	3,175,198
Patents [Member]
Intangible asset, gross	16,000	16,000
Accumulated amortizatio	(16,000)	(16,000)
Finite-Lived Intangible Assets, Net, Ending Balance	0	0
Trade Names [Member]
Intangible asset, gross	831,922	846,186
Accumulated amortizatio	(831,922)	(843,240)
Finite-Lived Intangible Assets, Net, Ending Balance	0	2,946
Technology and Software [Member]
Intangible asset, gross	615,053	624,162
Accumulated amortizatio	(615,053)	(624,162)
Finite-Lived Intangible Assets, Net, Ending Balance	0	0
Customer Relationships [Member]
Intangible asset, gross	4,883,789	4,963,860
Accumulated amortizatio	(1,920,678)	(1,791,608)
Finite-Lived Intangible Assets, Net, Ending Balance	$ 2,963,111	$ 3,172,252

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Note 5 - Shareholders' Equity (Details Textual) - USD ($)					1 Months Ended	3 Months Ended			6 Months Ended		9 Months Ended		12 Months Ended
	Apr. 01, 2021	Mar. 31, 2021	Mar. 29, 2021	Jan. 01, 2021	Feb. 29, 2020	Jun. 30, 2022	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2022	Jun. 30, 2021	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020	Dec. 31, 2021	Nov. 10, 2020	Nov. 09, 2020	Mar. 23, 2018	Dec. 30, 2016
Preferred Stock, Shares Authorized (in shares)											20,000,000
Preferred Stock, Par or Stated Value Per Share (in dollars per share)											$ 0.001
Common Stock Shares Exchanged (in shares)											178,000
Deferred Compensation Arrangement with Individual, Shares Issued (in shares)						13,021	18,099
Share-based Payment Arrangement, Expense						$ 41,916	$ 144,201		$ 60,012	$ 407,814
Deferred Compensation Arrangement with Individual, Exercise Price (in dollars per share)						$ 1.92	$ 2.21
Deferred Compensation Arrangement with Individual, Fair Value of Shares Issued						$ 25,000	$ 40,000
Two Thousand Eighteen Stock Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures, Total (in shares)								10,000
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year)								3 years
Two Thousand Eighteen Stock Option Plan [Member] | Share-Based Payment Arrangement, Employee [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year)	3 years
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period (Year)				10 years
Two Thousand Eighteen Stock Option Plan [Member] | Share-Based Payment Arrangement, Tranche One [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage								33.33%
Two Thousand Eighteen Stock Option Plan [Member] | Share-Based Payment Arrangement, Tranche Two [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage								33.33%
Two Thousand Eighteen Stock Option Plan [Member] | Share-Based Payment Arrangement, Tranche Three [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage								33.33%
Share-Based Payment Arrangement, Option [Member]
Share-based Payment Arrangement, Expense						$ 16,916	$ 24,618		$ 35,012	$ 49,481
Share-Based Payment Arrangement, Option [Member] | Two Thousand Eighteen Stock Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares)																450,000	450,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures, Total (in shares)													105,000
Share-Based Payment Arrangement, Option [Member] | The 2018 Stock Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares)															900,000
CEO/CFO [Member]
Stock Issued During Period, Shares, Issued for Services (in shares)			1,050,000
Stock Issued During Period, Value, Issued for Services			$ 2,005,500
Deferred Compensation Arrangement with Individual, Shares Issued (in shares)			250,000
Chief Executive Officer [Member]
Share-based Payment Arrangement, Expense		$ 477,500
ShipTime Acquisition [Member]
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares (in shares)											6,218
Series A Preferred Stock [Member]
Preferred Stock, Shares Authorized (in shares)						5,000,000			5,000,000					5,000,000
Preferred Stock, Par or Stated Value Per Share (in dollars per share)						$ 0.001			$ 0.001					$ 0.001
Preferred Stock, Shares Issued, Total (in shares)						0			0					0				5,000,000
Percentages of Payment Obligation											1.50%
Preferred Stock, Liquidation Preference Per Share (in dollars per share)											$ 3.03
ShipTime Canada Stock [Member]
Conversion of Stock, Shares, Convertible (in shares)					1
Common Stock Shares Exchanged (in shares)											500
PAID Preferred Stock [Member]
Conversion of Stock, Shares Issuable (in shares)					45
PAID Common Stock [Member]
Conversion of Stock, Shares Issuable (in shares)					311						356
Common Stock Exercised Shares (in shares)											1,461,078
Exchange of Preferred to Common (in shares)												1,015,851
Paid Series a Preferred Stock Shares Total (in shares)											2,089,298
Common Stock, Capital Shares Reserved for Future Issuance (in shares)											2,213,608
PAID Series A Preferred Stock [Member]
Preferred Stock Exercised Shares (in shares)											1,461,078
Exchange of Preferred to Common (in shares)												1,015,851

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Note 6 - Leases (Details Textual)	6 Months Ended
	Jun. 30, 2022
Lessee, Operating Lease, Renewal Term (Year)	4 years
Minimum [Member]
Leases, Remaining Lease Term (Month)	13 months
Maximum [Member]
Leases, Remaining Lease Term (Month)	14 months

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Note 6 - Leases - Schedule of Lease Expense (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Operating lease cost	$ 10,015	$ 10,407	$ 20,108	$ 20,502
Finance lease cost:
Amortization of leased assets	0	2,816	0	5,557
Interest on lease liabilities	0	29	0	86
Total finance lease cost	0	2,845	0	5,643
Operating lease cost	$ 10,015	$ 10,407	$ 20,108	$ 20,502

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Note 6 - Leases - Schedule of Supplemental Cash Flow Information (Details) - USD ($)	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Operating cash flows from operating leases	$ 20,704	$ 21,111
Operating cash flows from finance leases	0	86
Financing cash flows from finance leases	(0)	2,907
Operating leases	0	0
Finance leases	$ 0	$ 0

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Note 6 - Leases - Schedule of Supplemental Balance Sheet Information (Details) - USD ($)	Jun. 30, 2022	Dec. 31, 2021
Operating lease right-of-use assets	$ 42,569	$ 61,040
Current portion of operating lease obligations	36,972	36,123
Operating Lease, Liability, Noncurrent	5,274	25,187
Total	42,246	61,310
Property and equipment, at cost	53,558	53,885
Accumulated depreciation	(53,558)	(53,885)
Current portion of finance lease obligations	0	0
Finance lease obligations, net of current portion	0	0
Total finance lease liabilities	0	0
Property Plant and Equipment, Net [Member]
Property and equipment, net	$ 0	$ 0

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Note 6 - Leases - Schedule of Lease Terms (Details)	Jun. 30, 2022	Dec. 31, 2021
Operating lease (in years) (Year)	1 year 1 month 6 days	1 year 7 months 6 days
Finance leases (Year)	0 years	0 years
Weighted Average Discount Rate
Operating lease	9.00%	9.00%
Finance leases	0.00%	0.00%

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Note 6 - Leases -Schedule of Operating Lease Minimum Payments (Details) - USD ($)	Jun. 30, 2022	Dec. 31, 2021
2022 (remaining portion)	$ 20,243
2023	25,036
Total lease liabilities	45,279
Less amount representing interest	(3,033)
Total	42,246	$ 61,310
Less current portion	(36,972)	(36,123)
Operating Lease, Liability, Noncurrent	$ 5,274	$ 25,187