Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 1)
Payment Data Systems, Inc.
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(Name of Issuer)
Common Stock, par value $0.001 per share
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(Title of Class of Securities)
70438S103
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(CUSIP Number)
Michael R. Long
Chief Executive Officer and Chief Financial Officer
12500 San Pedro, Suite 120
San Antonio, Texas 78216
(210) 249-4100
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
December 27, 2006
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(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition that is the subject of this Schedule 13D, and is filing this
schedule because of 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the
following box. [ ]
The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).
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CUSIP No. 70438S103
1. Name of Reporting Person: I.R.S. Identification Nos. of above persons (entities only):
Michael R. Long
2. Check the Appropriate Box if a Member of a Group (See Instructions):
(a) [ ]
(b) [ ]
3.. SEC Use Only:
4. Source of Funds (See Instructions):
SC
5. Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e): [ ]
6 Citizenship or Place of Organization:
United States
7. Sole Voting Power:
7,277,191(1)
Number of
Shares 8. Shared Voting Power:
Beneficially 0
Owned by
Each Reporting 9. Sole Dispositive Power:
Person With 7,277,191(1)
10. Shared Dispositive Power:
0
11. Aggregate Amount Beneficially Owned by Each Reporting Person:
7,277,191
12. Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions):
[ ]
13 Percent of Class Represented by Amount in Row (11):
12.2%
14 Type of Reporting Person (See Instructions):
IN
1 Includes 1,680,167 shares not currently outstanding but subject to currently exercisable options.
Item 1. Security and Issuer
This statement relates to shares of common stock, par value $0.001 per share, of
Payment Data Systems, Inc., a Nevada corporation. The address of the principal
executive office of Payment Data Systems, Inc. is 12500 San Pedro, Suite 120,
San Antonio, Texas 78216.
Item 2. Identity and Background
(a) Michael R. Long
(b) 12500 San Pedro, Suite 120, San Antonio, Texas 78216
(c) Mr. Long is employed by Payment Data Systems, Inc. as its Chief
Executive Officer and Chief Financial Officer. The address of the principal
executive office of Payment Data Systems, Inc. is 12500 San Pedro, Suite 120,
San Antonio, Texas 78216.
(d) During the last five years, Mr. Long has not been convicted in a
criminal proceeding (excluding traffic violations or similar misdemeanors).
(e) During the last five years, Mr. Long has not been a party to a civil
proceeding of a judicial or administrative body of competent jurisdiction and as
a result of such proceeding was or is subject to a judgment, decree or final
order enjoining future violations of, or prohibiting or mandating activities
subject to, federal or state securities laws or finding any violation with
respect to such laws.
(f) United States
Item 3. Source and Amount of Funds or Other Consideration
On December 27, 2006, Mr. Long was granted 2,500,611 shares of common stock.
These shares were granted to Mr. Long as a result of his employment with Payment
Data Systems, Inc.
Item 4. Purpose of Transaction
In a private transaction, Mr. Long was granted 2,500,611 shares of common stock.
These shares were granted to Mr. Long as a result of his employment with Payment
Data Systems, Inc.
Item 5. Interest in Securities of the Issuer
(a) Mr. Long is the beneficial owner of 7,277,191 shares, or 12.2% of the
outstanding common stock of Payment Data Systems, Inc. as of February 2, 2007,
which includes 1,680,167 shares issuable pursuant to stock options granted by
Payment Data Systems, Inc. that are vested and fully exercisable.
(b) Mr. Long has sole voting power and sole dispositive power with respect
to the shares of common stock reported herein.
(c) During the past sixty days, the only transactions in the common stock by
Mr. Long other than as described in Item 3 above were the following open market
sales effected pursuant to a 10(b)5-1 trading plan effective as of September 14,
2006:
Date Price Number of Shares Sold
---- ----- ---------------------
1/16/2007 $0.11 10,000
1/25/2007 $0.103 10,000
1/25/2007 $0.105 10,000
(d) Not applicable.
(e) Not applicable.
Item 6. Contracts, Arrangements, Understandings or Relationships With Respect to
Securities of the Issuer
Mr. Long was granted 2,500,611 shares of common stock that vest on December 27,
2016. Mr. Long may acquire 1,680,167 shares of common stock issuable pursuant
to stock options granted by Payment Data Systems, Inc. that are vested and fully
exercisable.
Item 7. Material to Be Filed as Exhibits
Not applicable.
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
Date: February 2, 2007
/s/ Michael R. Long
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Michael R. Long
Chief Executive Officer and Chief Financial Officer