PAID, Inc. filed a current report on November 5, 2026, disclosing that effective October 31, 2026, it extended a Forbearance Agreement with Embolx, Inc. through January 31, 2027, covering a note receivable with a principal balance of $5,967,100.

Key Highlights

  • Forbearance extended: The Forbearance Agreement with Embolx, Inc. was extended through January 31, 2027, effective October 31, 2026.
  • Note balance: The note covered by the Forbearance and Loan Modification Agreement is $5,967,100, according to the filing.
  • Interest rate: The forbearance note carries a 25% interest rate, as disclosed in the filing.
  • Original note: The arrangement traces to a Securities Purchase Agreement entered October 13, 2022, involving a secured $1,875,000 convertible note issued by Embolx, Inc., purchased at a 20% original issue discount.
  • Prior default income: As of July 19, 2023, the original note was in default, and the Company recognized $578,425 of other income in its consolidated financial statements for the year ended December 31, 2023.
  • March 2024 amendment: The original note was amended and replaced in March 2024, with an additional $500,000 investment by the Company at a 25% original issue discount, due June 19, 2024.

PAID Inc. and Embolx: A History of Note Modifications and the Latest Extension

According to the filing, PAID, Inc. first entered a Securities Purchase Agreement with Embolx, Inc. on October 13, 2022, for a secured convertible note of $1,875,000, purchased at a 20% ($375,000) original issue discount with a 9-month maturity. The filing states the note gave PAID the option to convert into Embolx common stock and was secured by substantially all assets of Embolx. PAID also held rights to purchase additional notes and receive warrants for a total potential investment of $2,000,000, with an over-allotment option of $500,000.

The filing reports that the note entered default as of July 19, 2023, triggering a 20% penalty and 20% interest rate, and that $578,425 of other income was recognized in PAID's consolidated financial statements for the year ended December 31, 2023. In March 2024, the company amended and replaced the note, investing an additional $500,000 at a 25% original issue discount, due June 19, 2024, and also received a $50,000 increase to the debt owed by Embolx applied toward related expenses. The amended note entered default effective June 19, 2024.

The filing further discloses that on July 29, 2024, PAID's Board of Directors approved an extension with Embolx effective January 31, 2025. A Forbearance and Loan Modification Agreement extended the $5,967,100 note until September 30, 2025 at a 25% interest rate. That agreement was subsequently amended on September 30, 2025 to expire August 31, 2026, then extended again by letter agreement dated August 31, 2026 through October 31, 2026. The current 8-K discloses the latest extension, effective October 31, 2026, running through January 31, 2027.

What Was Disclosed

PAID, Inc. disclosed the extension of its Forbearance Agreement with Embolx, Inc. through January 31, 2027, covering a $5,967,100 note at a 25% interest rate, and filed a letter agreement as Exhibit 10.6 to formalize the extension.