Overview

ShipTime Inc. has developed a SaaS-based application that focuses on the small to medium business segment. This offering allows members to quote, process, generate labels, insure, dispatch, and track courier and LTL shipments all from a single interface. The application provides customers with a choice of leading couriers and freight carriers with discounted pricing, allowing members to save on every shipment. ShipTime can also be integrated into online shopping carts to facilitate sales via e-commerce. The company actively sells directly to small businesses and through long-standing partnerships with selected associations throughout Canada. The focus in 2025 will be to continue growing this portion of the business.

PAID, Inc. (the “Company”) includes the PaidPayment, PaidWeb, PaidCart, and PaidShipping products that offer a robust platform enabling small and medium businesses to launch websites via a catalog of templates. The platform includes features such as mobile editing, search engine optimization, collaboration tools, pre-designed templates, and integration with multiple platforms. PaidCart serves as a comprehensive solution for small and medium businesses to expand their online sales through various channels, with functionalities for currency and language management, promotional sales, and abandoned cart recovery. PaidPayments and PaidShipping seamlessly interface with PaidCart to facilitate the checkout and shipping processes.

Significant Accounting Policies

The company’s significant accounting policies are described in Note 3 to the consolidated financial statements for the years ended December 31, 2024 and 2023, as updated and amended in Note 1 of the Notes to Condensed Consolidated Financial Statements. The policies related to revenue recognition are particularly important to the portrayal of the company’s financial position and results of operations and require the application of significant judgment by management.

Results of Operations

Comparison of the three months ended June 30, 2025 and 2024:

Metric	Q2 2025	Q2 2024	% Change
Client services revenue	$1,829	$5,266	(65)%
Shipping coordination and label generation services revenue	$5,393,029	$4,579,273	18%
eCommerce services revenue	$33,167	$18,760	77%
Total net revenues	$5,428,025	$4,603,299	18%

Revenues increased 18% in the second quarter, primarily due to the 18% increase in shipping coordination and label generation services. This was driven by shifts in shipping volume from Canada Post to alternate carriers and strategic pricing strategies.

Client services revenue, which includes brewery management software and shipping calculator services, decreased by 65% due to the cancellation of several brewery management software clients and the announcement of the closing of BeerRun Software in June 2025.

Gross profit increased by $94,084 to $1,201,653, but gross margin decreased from 24% to 22%.

Total operating expenses increased by $425,870 or 36%, primarily due to stock-based compensation expense.

Net other income decreased by $838,252 or 99%, as the second quarter of 2024 included interest and additional discounts related to a note receivable.

The company recorded a net loss of $397,349 in the second quarter of 2025, compared to a net income of $770,452 in the same period of 2024.

Comparison of the six months ended June 30, 2025 and 2024:

Metric	H1 2025	H1 2024	% Change
Client services revenue	$3,863	$12,525	(69)%
Shipping coordination and label generation services revenue	$9,739,170	$8,719,118	12%
eCommerce services revenue	$62,784	$32,405	94%
Total net revenues	$9,805,817	$8,764,048	12%

Revenues increased 12% in the first half of 2025, primarily due to a 12% increase in shipping coordination and label generation services. This was driven by ongoing marketing efforts, strategic pricing, and shifts in shipping volume from Canada Post to alternate carriers.

Client services revenue decreased by 69% due to the cancellation of several brewery management software clients and the announcement of the closing of BeerRun Software.

Gross profit increased by $95,803 to $2,221,730, but gross margin decreased from 24% to 23%.

Total operating expenses increased by $548,770 or 25%, primarily due to $511,899 in stock-based compensation expense.

Net other income decreased by $1,170,885 or 98%, as the first half of 2024 included interest and additional discounts related to a note receivable.

The company recorded a net loss of $546,122 in the first half of 2025, compared to a net income of $1,069,890 in the same period of 2024.

Cash Flows and Liquidity

The company had cash and cash equivalents of $1,068,119 at June 30, 2025, compared to $1,284,965 at December 31, 2024. The company had a net working capital deficit of $577,380 at June 30, 2025, a decrease of $52,087 compared to the deficit of $629,467 at December 31, 2024.

The company may need an infusion of additional capital to fund anticipated operating costs over the next 12 months, but management believes the company has adequate cash resources to fund operations. However, there is no assurance that anticipated growth will occur or that the company will be successful in launching new products and services.

Conclusion

ShipTime Inc. and PAID, Inc. have seen mixed financial performance in the first half of 2025. While the shipping coordination and label generation services segment has experienced growth, the client services segment has declined significantly due to the closure of the BeerRun Software business. The company has also faced increased operating expenses, particularly related to stock-based compensation.

The company’s liquidity position remains a concern, with a net working capital deficit. Management is exploring options to secure additional capital, but there is no guarantee that the company will be able to fund its operations over the next 12 months. The outlook for the company’s future performance remains uncertain, and investors should carefully consider the risks and factors that may affect the business, financial condition, and prospects of ShipTime Inc. and PAID, Inc.