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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=4>UNITED STATES</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=4>SECURITIES AND EXCHANGE COMMISSION</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>WASHINGTON, DC 20549</font></B></p>


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<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><B><font SIZE=4>FORM 8-KA</font></B></p>


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<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><B><font SIZE=2>CURRENT REPORT</font></B></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><b><font size=2>Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934</font></b></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><b><font size=2>Date of report:</font></b></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><b><font size=2>January 9, 2006</font></b></p>


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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=5>PIPELINE DATA INC.</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(Exact name of small business issuer in its charter)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><b><font size=1>Delaware</font></b></p> </td>
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            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="184" valign=bottom style='background:white;padding: 0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><b><font size=1>7389</font></b></p> </td>
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            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="168" valign=bottom style='background:white;padding: 0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><b><font size=1>13-3953764</font></b></p> </td>
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            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=1>(State or jurisdiction of </font></p> </td>
        <td width="8" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="184" valign=bottom style='background:white;padding: 0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:20.25pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>(Primary Standard Indus.</font></p> </td>
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            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="168" valign=top style='background:white;padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:22.5pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>(I.R.S. Employer</font></p> </td>
        <td width="32" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=1>incorporation or organization)</font></p> </td>
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            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="184" valign=bottom style='background:white;padding: 0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=1>Classification Code Number)</font></p> </td>
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            <p style='margin-left:0in;text-indent:0pt;text-align: center;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="168" valign=top style='background:white;padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>Identification No)</font></p> </td>
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            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
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            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="184" valign=bottom style='background:white;padding: 0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="8" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="168" valign=top style='background:white;padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
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            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><font size=2>1515 Hancock Street, Suite 301, Hancock Plaza</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>Quincy, Massachusetts 02169</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(617) 405-2600</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><font size=2>(Address and telephone number of principal executive offices)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>MacAllister Smith</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>1515 Hancock Street, Suite 301, Hancock Plaza</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>Quincy, Massachusetts 02169</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(781) 843-3812</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><font size=2>(Name, address and telephone number of agent for service)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>Not Applicable</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><font size=2>(Former name or former address, if changed since last report)</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2>Check the  appropriate  box below if the Form 8-K  filing  is  intended  to simultaneously  satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):     </font></p>


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            <p style='margin:0in;text-indent: 0in;text-align:left;margin-top:8pt;margin-bottom:.0001pt'><font size=2><font face=Wingdings>o</font>Written  communications  pursuant to Rule 425 under the  Securities Act (17 CFR 230.425)</font></p> </td> </tr>
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            <p style='margin-left:0in;text-indent:0in;text-align:left;margin-top:8pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="516" nowrap valign=top style='padding:8.0pt 0in 0in 0in; '>
            <p style='margin:0in;text-indent: 0in;text-align:left;margin-top:8pt;margin-bottom:.0001pt'><font size=2><font face=Wingdings>o</font> Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.5in; text-indent:-0.3in;text-align:left;'><font size=2><font face=Wingdings>o</font> Pre-commencement  communications  pursuant to Rule 14d-2(b)  under the Exchange Act (17 CFR 240.14d-2(b))</font></p>


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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2>Item 1.01. Entry into a Material Definitive Agreement.</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2>On  December 20, 2005,  Pipeline  Data Inc. (&#147;Pipeline&#148;)  entered into a financing  arrangement with Sheridan Capital Advisors, LLC.  Under the  arrangement,  Pipeline  issued  Sheridan Capital Advisors, LLC.  a $15,000,000 secured  senior note  that will  mature  on  December 20, 2006 (the &#147;Note&#148;). The Note bears  interest at seventeen percent (17%).  Pipeline granted  to  Sheridan Capital Advisors, LLC. a first  priority security  interest in Pipeline&#146;s assets pari passu with Pipeline&#146;s $2,000,000 obligation of CAMOFI  Master  LDC.  No equity in Pipeline was issued in connection with the Sheridan financing.  The proceeds from the financing have enabled Pipeline to complete its acquisition of Charge.com, Inc. and to repay all amounts outstanding under the $6,000,000 convertible debt obligation to Laurus Master Fund, Ltd.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2>Upon a public offering of Pipeline&#146;s equity securities, Pipeline shall be required to repay at least $7.5 million in aggregate principal amount of the Note (plus accrued interest to the date of repayment). Upon the sale of any assets of Pipeline or any of its subsidiaries in a transaction or series of transactions in excess of $50,000, Pipeline shall be required to use 100% of the proceeds of such asset sale to repay the principal amount of the Note (plus accrued interest to the date of repayment).   </font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2>Pipeline has the right to prepay, in cash, all or a portion of the Note at 110% of the principal amount thereof plus accrued interest to the date of repayment.  Notwithstanding the foregoing, in the event Pipeline prepays the Note in full or repays it at maturity and the aggregate amount received by the Lender from all prepayments and interest shall be less than $2.1 million.  </font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2>The  information  in this  Form  8-K  is  being furnished  pursuant to Item 1.01 &#147;Entry  into a Material  Definitive  Agreement&#148; shall not be deemed to be &#147;filed&#148; for  purposes of Section 18 of the  Securities Exchange Act of 1934, as amended (the &#147;Exchange  Act&#148;), or otherwise  subject to the liability of that section,  and shall not be  incorporated by reference into any  registration  statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt'><b><font size=2>Item 2.03. Creation of Direct Financial Obligation.</font></b></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2>On  December 20, 2005,  Pipeline  entered into a financing  arrangement with Sheridan Capital Advisors, LLC.  Under the  arrangement,  Pipeline  issued  Sheridan Capital Advisors, LLC.  a $15,000,000 secured  senior note  that will  mature  on  December 20, 2006 (the &#147;Note&#148;). The Note bears  interest at seventeen percent (17%).  Pipeline granted  to  Sheridan Capital Advisors, LLC. a first  priority security  interest in Pipeline&#146;s assets pari passu with Pipeline&#146;s $2,000,000 obligation of CAMOFI  Master  LDC.  No equity in Pipeline was issued in connection with the Sheridan financing.  The proceeds from the financing have enabled Pipeline to complete its acquisition of Charge.com, Inc. and to repay all amounts outstanding under the $6,000,000 convertible debt obligation to Laurus Master Fund, Ltd.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2>Upon a public offering of Pipeline&#146;s equity securities, Pipeline shall be required to repay at least $7.5 million in aggregate principal amount of the Note (plus accrued interest to the date of repayment). Upon the sale of any assets of Pipeline or any of its subsidiaries in a transaction or series of transactions in excess of $50,000, Pipeline shall be required to use 100% of the proceeds of such asset sale to repay the principal amount of the Note (plus accrued interest to the date of repayment).   </font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2>Pipeline has the right to prepay, in cash, all or a portion of the Note at 110% of the principal amount thereof plus accrued interest to the date of repayment.  Notwithstanding the foregoing, in the event Pipeline prepays the Note in full or repays it at maturity and the aggregate amount received by the Lender from all prepayments and interest shall be less than $2.1 million.  </font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2>The  information  in this  Form  8-K  is  being furnished pursuant to Item 2.03 &#147;Creation of Direct Financial  Obligation&#148; shall not be deemed  to be  &#147;filed&#148;  for  purposes  of  Section  18 of the  Securities Exchange Act of 1934, as amended (the &#147;Exchange  Act&#148;), or otherwise  subject to the liability of that section,  and shall not be  incorporated by reference into any  registration  statement or other document </font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2>Item 8.01. Other Events.</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2>The proceeds from the $15,000,000 financing from Sheridan Capital Advisors, LLC. have enabled Pipeline to complete its acquisition of Charge.com, Inc. and to repay all amounts outstanding under the $6,000,000 convertible debt obligation to Laurus Master Fund, Ltd.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2>Pipeline used $7.5 million of the $15 million to purchase Charge.com (in addition to separate consideration of $9.5 million in shares of Pipeline restricted common stock at a per share price of $1.03) and $5,947,362 to repay its $6,000,000 convertible debt obligation to Laurus Master Fund, Ltd.  A portion of the remaining proceeds were  used for fees and expenses associated with the transactions and the remainder will be used for working capital for Pipeline.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2>The  information  in this  Form  8-K  is  being furnished  pursuant to Item 8.01 &#147;Other Events&#148; shall not be deemed to be &#147;filed&#148; for  purposes of Section 18 of the  Securities Exchange Act of 1934, as amended (the &#147;Exchange  Act&#148;), or otherwise  subject to the liability of that section,  and shall not be  incorporated by reference into any  registration  statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.</font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><B><font SIZE=2>SIGNATURE</font></B></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2>Pursuant to the  requirements  of the  Securities and Exchange Act of 1934, the  Registrant  has  caused  this  report  to be  signed  on its  behalf by the undersigned thereunto duly authorized.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="36" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt'><font size=2>Dated:</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt'><br> <font size=2> January 9, 2006</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt'><font size=2>By:&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt'><font size=2>Pipeline Data Inc.</font><br> <font size=2>/s/ MacAllister Smith</font></p> </td> </tr>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt'><font size=2>Name:&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt'><font size=2>MacAllister Smith</font></p> </td> </tr>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt'><font size=2>Title:&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt'><font size=2>Chief Executive Officer</font></p> </td> </tr></table>

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-KA
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of report:
January 9, 2006
PIPELINE DATA INC.
(Exact name of small business issuer in its charter)
Delaware
7389
13-3953764
(State or jurisdiction of
(Primary Standard Indus.
(I.R.S. Employer
incorporation or organization)
Classification Code Number)
Identification No)
1515 Hancock Street, Suite 301, Hancock Plaza
Quincy, Massachusetts 02169
(617) 405-2600
(Address and telephone number of principal executive offices)
MacAllister Smith
1515 Hancock Street, Suite 301, Hancock Plaza
Quincy, Massachusetts 02169
(781) 843-3812
(Name, address and telephone number of agent for service)
Not Applicable
(Former name or former address, if changed since last report)
Check the  appropriate  box below if the Form 8-K  filing  is  intended  to simultaneously  satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
o
Written  communications  pursuant to Rule 425 under the  Securities Act (17 CFR 230.425)
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement  communications  pursuant to Rule 14d-2(b)  under the Exchange Act (17 CFR 240.14d-2(b))
Item 1.01. Entry into a Material Definitive Agreement.
On  December 20, 2005,  Pipeline  Data Inc. ("Pipeline")  entered into a financing  arrangement with Sheridan Capital Advisors, LLC.  Under the  arrangement,  Pipeline  issued  Sheridan Capital Advisors, LLC.  a $15,000,000 secured  senior note  that will  mature  on  December 20, 2006 (the "Note"). The Note bears  interest at seventeen percent (17%).  Pipeline granted  to  Sheridan Capital Advisors, LLC. a first  priority security  interest in Pipeline's assets pari passu with Pipeline's $2,000,000 obligation of CAMOFI  Master  LDC.  No equity in Pipeline was issued in connection with the Sheridan financing.  The proceeds from the financing have enabled Pipeline to complete its acquisition of Charge.com, Inc. and to repay all amounts outstanding under the $6,000,000 convertible debt obligation to Laurus Master Fund, Ltd.
Upon a public offering of Pipeline's equity securities, Pipeline shall be required to repay at least $7.5 million in aggregate principal amount of the Note (plus accrued interest to the date of repayment). Upon the sale of any assets of Pipeline or any of its subsidiaries in a transaction or series of transactions in excess of $50,000, Pipeline shall be required to use 100% of the proceeds of such asset sale to repay the principal amount of the Note (plus accrued interest to the date of repayment).
Pipeline has the right to prepay, in cash, all or a portion of the Note at 110% of the principal amount thereof plus accrued interest to the date of repayment.  Notwithstanding the foregoing, in the event Pipeline prepays the Note in full or repays it at maturity and the aggregate amount received by the Lender from all prepayments and interest shall be less than $2.1 million.
The  information  in this  Form  8-K  is  being furnished  pursuant to Item 1.01 "Entry  into a Material  Definitive  Agreement" shall not be deemed to be "filed" for  purposes of Section 18 of the  Securities Exchange Act of 1934, as amended (the "Exchange  Act"), or otherwise  subject to the liability of that section,  and shall not be  incorporated by reference into any  registration  statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 2.03. Creation of Direct Financial Obligation.
On  December 20, 2005,  Pipeline  entered into a financing  arrangement with Sheridan Capital Advisors, LLC.  Under the  arrangement,  Pipeline  issued  Sheridan Capital Advisors, LLC.  a $15,000,000 secured  senior note  that will  mature  on  December 20, 2006 (the "Note"). The Note bears  interest at seventeen percent (17%).  Pipeline granted  to  Sheridan Capital Advisors, LLC. a first  priority security  interest in Pipeline's assets pari passu with Pipeline's $2,000,000 obligation of CAMOFI  Master  LDC.  No equity in Pipeline was issued in connection with the Sheridan financing.  The proceeds from the financing have enabled Pipeline to complete its acquisition of Charge.com, Inc. and to repay all amounts outstanding under the $6,000,000 convertible debt obligation to Laurus Master Fund, Ltd.
Upon a public offering of Pipeline's equity securities, Pipeline shall be required to repay at least $7.5 million in aggregate principal amount of the Note (plus accrued interest to the date of repayment). Upon the sale of any assets of Pipeline or any of its subsidiaries in a transaction or series of transactions in excess of $50,000, Pipeline shall be required to use 100% of the proceeds of such asset sale to repay the principal amount of the Note (plus accrued interest to the date of repayment).
Pipeline has the right to prepay, in cash, all or a portion of the Note at 110% of the principal amount thereof plus accrued interest to the date of repayment.  Notwithstanding the foregoing, in the event Pipeline prepays the Note in full or repays it at maturity and the aggregate amount received by the Lender from all prepayments and interest shall be less than $2.1 million.
The  information  in this  Form  8-K  is  being furnished pursuant to Item 2.03 "Creation of Direct Financial  Obligation" shall not be deemed  to be  "filed"  for  purposes  of  Section  18 of the  Securities Exchange Act of 1934, as amended (the "Exchange  Act"), or otherwise  subject to the liability of that section,  and shall not be  incorporated by reference into any  registration  statement or other document
filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 8.01. Other Events.
The proceeds from the $15,000,000 financing from Sheridan Capital Advisors, LLC. have enabled Pipeline to complete its acquisition of Charge.com, Inc. and to repay all amounts outstanding under the $6,000,000 convertible debt obligation to Laurus Master Fund, Ltd.
Pipeline used $7.5 million of the $15 million to purchase Charge.com (in addition to separate consideration of $9.5 million in shares of Pipeline restricted common stock at a per share price of $1.03) and $5,947,362 to repay its $6,000,000 convertible debt obligation to Laurus Master Fund, Ltd.  A portion of the remaining proceeds were  used for fees and expenses associated with the transactions and the remainder will be used for working capital for Pipeline.
The  information  in this  Form  8-K  is  being furnished  pursuant to Item 8.01 "Other Events" shall not be deemed to be "filed" for  purposes of Section 18 of the  Securities Exchange Act of 1934, as amended (the "Exchange  Act"), or otherwise  subject to the liability of that section,  and shall not be  incorporated by reference into any  registration  statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
SIGNATURE
Pursuant to the  requirements  of the  Securities and Exchange Act of 1934, the  Registrant  has  caused  this  report  to be  signed  on its  behalf by the undersigned thereunto duly authorized.
Dated:
January 9, 2006
By:
Pipeline Data Inc.
/s/ MacAllister Smith
Name:
MacAllister Smith
Title:
Chief Executive Officer