---
schema_version: "secwatch.filing_event.v1"
accession: "0001437749-24-022663"
form_type: "8-K"
ticker: "PAYD"
cik: "0001017655"
company_name: "PAID INC"
filed_at: "2024-07-12T23:59:59+00:00"
generated_at: "2026-05-31T20:54:50.948189+00:00"
event_type: "m_and_a"
sentiment: "neutral"
materiality_score: 0.7
calibrated_materiality_score: 0.7
confidence: "high"
source: SEC EDGAR
---

# PAID, Inc. loans $400K to 5String Solutions at 12%; convertible to 55% ownership, with option to buy remaining 45%

## Summary
- Funded $250K initial advance on July 5, 2024; remaining $150K available by July 2025.
- Loan converts into 55% of 5String's membership units at maturity; additional $150K could give PAID up to 76%.
- PAID obligated to purchase remaining 45% units by April 2027 based on 5x EBITDA less debt.
- Loan secured by all 5String assets; PAID first lien with subordinated noteholders.
- Prior $50K loan rolled into this note; interest waived if EBITDA >= $300K.

## SEC filing metadata
- accession: 0001437749-24-022663
- form_type: 8-K
- ticker: PAYD
- cik: 0001017655
- company_name: PAID INC
- filed_at: 2024-07-12T23:59:59+00:00
- event_type: m_and_a
- sentiment: neutral
- materiality_score: 0.7
- calibrated_materiality_score: 0.7
- confidence: high
- sec_items: 1.01, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/1017655/000143774924022663/0001437749-24-022663-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/1017655/000143774924022663/payd20240711_8k.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001437749-24-022663
- JSON: https://secwatch.observer/filing/0001437749-24-022663.json
- Plain text: https://secwatch.observer/filing/0001437749-24-022663.txt

This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.