UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(D) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 3, 2007
PAID, INC.
(Exact name of Registrant as Specified in Charter)
Delaware 0-28720 73-1479833
(State or other (Commission File Number) (IRS Employer
Jurisdiction of Identification No.)
Incorporation)
4 Brussels Street, Worcester, Massachusetts 01610
(Address of principal executive offices and zip code)
Registrant's telephone number, including area code: (508) 791-6710
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(Former nae or former address, if changed siince last report.)
Item 4.02. Non-Reliance on Previously Issued Financial Statements or a Related
Audit Report or Completed Interim Report
Response - On March 28, 2007, as part of its audit review of the Company's
proposed Annual Report on Form 10-KSB for the year ended December 31, 2006, our
independent registered accountants identified a possible issue related to the
accounting treatment of certain call options received by the Company in 2005. On
April 3, 2007, Management determined, based on the advice of its independent
registered accountants on that date, that a restatement of previously filed
quarterly reports for the quarters ended, June 30, 2005 and September 30, 2005,
and the year ended December 31, 2005, and for the quarters ended March 31, 2006,
June 30, 2006, and September 30, 2006 was required to correct the treatment of
the accounting for the call options.
The change in accounting treatment is described in full detail in Note 14 to the
Audited Consolidated Financial Statements, Part II, Item 7, of the Company's
Annual Report on Form 10-KSB, filed on April 4, 2007 ("Note 14"). As a brief
summary, the Company determined that the cash received from the sale price of
the call options should have been recorded as an increase to additional paid-in
capital. As a result, the Company restated its statements of operations to
remove the effects of this change from operations and to treat the original
transaction and any subsequent transactions related to it as capital
transactions. Note 14 provides more detailed information regarding this change.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
PAID, INC.
Date: February 4, 2008 By: /s/ Greg Rotman
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Greg Rotman, President