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# PAID Discloses Forbearance on $5.97M of Defaulted Embolx Notes
- URL: https://redfiled.com/paid-discloses-forbearance-on-5-97m-of-defaulted-embolx-notes/
- Published: 2026-09-07T18:05:36.000Z
- Updated: 2026-09-07T18:05:36.000Z
- Description: Paid Inc filed a forbearance and loan modification agreement covering a $5,967,100 default balance owed by medical device firm Embolx, including $687,500 of fresh funding.
- Author: William Hayes
- Tags: PAYD, Other

**Paid Inc** (PAYD) has filed an 8-K containing a *Forbearance and Loan Modification Agreement* with Embolx, Inc., in which Paid acts as the holder of Series "A" senior secured notes. The agreement, effective January 31, 2025, formally declares Embolx in default and fixes the so-called *Default Balance* owed to **Paid Inc** at $5,967,100.

The underlying paper dates from March 12, 2024, when Embolx issued a 25% original issue discount senior secured "A" note under a securities purchase agreement, backed by a security agreement shared with other secured creditors. According to the filing, Embolx *failed to pay all obligations evidenced by the Note on or before June 19, 2024*, which constitutes the default that is now acknowledged by both parties.

Rather than calling the loan immediately, **Paid Inc** agreed to hold off on enforcement during a forbearance period running to September 30, 2025, unless one of several termination events occurs earlier. Those triggers include any new event of default, a bankruptcy or insolvency proceeding involving Embolx, litigation by Embolx against the holder, or the termination or adverse modification of a co-marketing agreement Embolx signed with Varian on December 14, 2024.

The default balance includes principal, interest, penalties and fees across the Series A, Series B and Series C notes, and it also incorporates new funding of $687,500\. With the original issue discount applied, that new money increases the original principal amount by $916,664\. The revised balance becomes the new base for calculating any conversion amount, mandatory default amount, prepayment or payment amount.

The agreement also tightens control over the borrower. Embolx may not forbear, prepay or repay other indebtedness, or amend the terms of other debt, without prior written consent from the holder. In addition, Embolx was required to deliver executed proxies representing a majority of each class of listed shareholders to **Paid Inc**, effective through October 31, 2025.

Section 5.05 of the purchase agreement was amended so that, until February 1, 2027, a majority in principal amount of each note series is sufficient to approve a waiver binding on the company and all investors. Embolx also released the holder and its affiliates from any existing claims relating to the making or administration of the loans.

For **Paid Inc**, the disclosure sets out the size and status of a secured credit exposure that is large relative to the company's scale, together with the security interests, liens and pledges that the filing states remain valid and enforceable.

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This is a factual summary of a public filing or press release, not investment advice. Verify all figures against the source before acting on them.