Following attorney Keith Davidson's testimony about Michael Cohen providing the $130,000 payment for Stormy Daniels' hush money deal, Judge Juan Merchan recessed the proceedings for the day.

With court off on Wednesday, he told the jury to report back at at 10 a.m. ET Thursday, allowing 30 minutes for a gag order hearing scheduled for the same day.

On Oct. 25, 2016, National Enquirer editor Dylan Howard made a push to restart the Daniels deal after Michael Cohen failed to come up with the agreed-upon $130,000 hush money payment, Stormy Daniels' then-attorney Keith Davidson testified.

"Push for the cash. [David Pecker] and I just told [Cohen] he has to pay the 150K," Howard texted Davidson that day, according to evidence.

"It was an attempt to resurrect this deal that had fallen apart," Davidson testified. "They were encouraging Cohen to deal directly with me and that I should try to get as much as I could up to $150,000."

"The entire matter was frustrating, that it was on again, off again, that there were delays in funding and cancellations," Davidson said about the entire Daniels transaction.

According to Davidson, Cohen continued to push back on the deal despite the encouragement from Howard and National Enquirer publisher David Pecker.

"When I call Cohen, he says I am not paying anything. AMI is paying," a frustrated Davidson testified.

On Oct. 26, 2016, Davidson said that he resent Cohen the instructions for where to wire the payment.

Asked why he resent the instructions, Davidson cited Cohen's repeated assertion that "he didn't have my wiring instructions despite the fact that they were repeatedly sent to him previously."

"He said, 'We are sending you the money,'" Davidson recounted Cohen saying on Oct. 26, 2016.

"I told him I didn't believe him," Davidson testified.

According to Davidson, Cohen then emailed him the wire transfer confirmation from First Republic Bank to prove that the money was sent.

But Davidson said he still did not believe the money was sent, despite the email.

"It meant nothing to me," Davidson said, adding that Cohen’s email only confirmed he had the money, not that he had sent it.

Earlier testimony from Cohen's banker detailed how Cohen ultimately completed the transfer of funds on Oct. 27, 2016.

When court resumed following the afternoon break, prosecutor Joshua Steinglass continued his direct examination of Stormy Daniels' attorney Keith Davidson.

Davidson testified that while Michael Cohen did not directly say he was negotiating the hush money deal on behalf of Donald Trump, it was implied throughout their negotiations.

"He leaned on his close affiliation with Donald Trump," Davidson said, adding that for Cohen, working for Trump was "part of his identity."

As a result, Davidson suggested he assumed that Donald Trump would ultimately fund the $130,000 payment to Daniels.

"It was my understanding that Mr. Trump was the beneficiary of this contract," Davidson said. He added that the beneficiary of a contract normally pays the contract -- but Judge Merchan struck that portion of his testimony.

Steinglass then attempted to get a clear answer to confirm that Davidson believed Trump would ultimately be responsible for Daniels' payment, but defense lawyer Emil Bove successfully interrupted the testimony through multiple objections and sidebars.

Davidson testified that in October 2016, National Enquirer editor Dylan Howard joked to Davidson about Trump's frugality, which Davidson said he believed was getting in the way of Daniels' contract being completed.

"I reckon that trump impersonator I hired has more cash," Howard said in a text to Davidson that was displayed for the jury.

Stormy Daniels' attorney Keith Davidson testified that he began to think Michael Cohen was beginning to come up with excuses not to send the $130,000 payment owed to Daniels for her silence regarding an alleged rendezvous with Trump.

Jurors saw an email from Cohen where he blamed the delay on the Yom Kippur holiday.

"There were other excuses," Davidson said.

On October 17, 2016, Davidson threatened to cancel the contract with Daniels after he said Cohen made a "barrage of excuses" and failed to meet the funding deadline for the contract.

"The things he was saying didn't make sense from one conversation to the next," Davidson said.

Davidson listed the excuses including, "the computer systems were all f----- up," there was increased security due to the Secret Service, and he had lost the wire instructions.

"This is a very bad situation," Davidson recounted telling Cohen. "It is making me look bad, and I don't really believe a word that you are saying."

"What do you expect me to do -- my guy is in five f------ states today," Davidson said Cohen told. "I am doing everything I can."

Davidson testified his interpretation was that Cohen did not have the direct authorization to send the money.

"Where did you believe the money to be coming from?" prosecutor Josh Steinglass asked. "From Donald Trump or some kind of corporate entity," Davidson said.

On October 17, 2016, Davidson said he emailed Cohen to cancel the Daniels agreement and tell him that he no longer represented her.

"This is the straw that broke the camel's back," Davidson said following all the excuses from Cohen. "I said, 'Hey, this deal is over.'"

"I am out. Go in peace," Davidson summarized his email to Cohen.

"I believed Cohen was not being truthful," Davidson said. "I thought he was trying to kick the can down the road until after the election."

Cohen finally budged and said he would send the money himself, according to Davidson.

"God damn it, I will just do it myself," Cohen eventually said, according to Davidson.

Court subsequently recessed for a short afternoon break. Trump did not speak with reporters as he left the courtroom.

In the paper order explaining his ruling holding Trump in contempt for his violations of the case's limited gag order, Judge Merchan warned Trump that he could be locked up if he continues to willfully violate the order.

"Defendant is hereby warned that the Court will not tolerate continued willful violations of its lawful orders and that if necessary and appropriate under the circumstances, it will impose an incarceratory punishment," Merchan wrote in his order.

Merchan wrote that Trump has until 2:15 p.m. ET today to remove posts violating the order from his social media account and campaign website. Trump has until close of business on Friday to submit the $9,000 penalty Merchan levied against him.

In his ruling, the judge also appeared to acknowledge the behavior of Michael Cohen, who has been targeting Trump on TikTok, and indicated that it could possibly lead to modifications of the gag order in the future.

Merchan said it is of the "utmost importance" that the limited gag order "not be used as a sword instead of a shield by potential witnesses," underscoring that the true purpose of the order is to "protect the integrity of these proceedings by shielding those fearful of reprisal by the Defendant so that they may take part in these proceedings without concern."

"However, if a protected party turns that underlying purpose on its head, it becomes apparent that the protected party likely does not need to be protected by the Expanded Order," the judge wrote.

Trump's team has argued that some of Trump's remarks were in response to attacks on him, including from Michael Cohen.