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blkbx20240630_10q.htm

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended

June 30, 2024

☐

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from

Commission File No.

001-41051

BLACKBOXSTOCKS INC.

(Exact name of registrant as specified in its charter)

Nevada	45-3598066
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

5430 LBJ Freeway, Suite 1485, Dallas, Texas	75240
(Address of principal executive offices)	(Zip Code)

(972) 726-9203

(Registrant’s telephone number, including area code)

(Former name, former address and former fiscal year if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.001 per share	BLBX	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐	Accelerated filer ☐

Non-accelerated filer ☒	Smaller reporting company ☒
	Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The number of shares outstanding of the registrant’s Common Stock as of August 14, 2024 was 3,517,431.

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TABLE OF CONTENTS

		Page
INTRODUCTORY COMMENT		1
CAUTION REGARDING FORWARD LOOKING STATEMENTS		1

PART I –FINANCIAL INFORMATION		2
Item 1.	Condensed Consolidated Financial Statements	2
	Condensed Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023 (Unaudited)	2
	Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2024 and 2023 (Unaudited)	3
	Condensed Consolidated Statement of Stockholders’ Equity for the Six Months Ended June 30, 2024 and 2023 (Unaudited)	4
	Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2024 and 2023 (Unaudited)	5
	Notes to Condensed Consolidated Financial Statements	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	13
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	17
Item 4.	Controls and Procedures	17

PART II – OTHER INFORMATION		18
Item 1.	Legal Proceedings	18
Item 1A.	Risk Factors	18
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	18
Item 3.	Defaults Upon Senior Securities	19
Item 4.	Mine Safety Disclosures	19
Item 5.	Other Information	19
Item 6.	Exhibits	19

SIGNATURES		19

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INTRODUCTORY COMMENT

Throughout this Quarterly Report on Form 10-Q, the terms “we,” “us,” “our,” “Blackboxstocks,” or the “Company” refers to Blackboxstocks Inc., a Nevada corporation.

CAUTION REGARDING FORWARD-LOOKING STATEMENTS

Our prospects are subject to uncertainties and risks. In this Quarterly Report on Form 10-Q (the “Report”), we make forward-looking statements that involve substantial uncertainties and risks. When used in this Report, the words “may,” “will,” “expect,” “anticipate,” “continue,” “estimate,” “intend,” and similar expressions are intended to identify forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) regarding events, conditions and financial trends which may affect our future plans of operations, business strategy, operating results and financial position. Such statements are not guarantees of future performance and are subject to risks and uncertainties described herein and actual results may differ materially from those included within the forward-looking statements. Additional factors are described in our other public reports and filings with the Securities and Exchange Commission (the “SEC”). Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. We undertake no obligation to publicly release the result of any revision of these forward-looking statements to reflect events or circumstances after the date they are made or to reflect the occurrence of unanticipated events.

This Report contains certain estimates and plans related to us and the industry in which we operate, which assume certain events, trends and activities will occur and the projected information based on those assumptions. We do not know that all of our assumptions are accurate. If our assumptions are wrong about any events, trends and activities, then our estimates for future growth for our business may also be wrong. There can be no assurance that any of our estimates as to our business growth will be achieved.

The following discussion and analysis should be read in conjunction with our financial statements and the notes associated with them contained elsewhere in this Report. This discussion should not be construed to imply that the results discussed in this Report will necessarily continue into the future or that any conclusion reached in this Report will necessarily be indicative of actual operating results in the future. The discussion represents only the best assessment of management.

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PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

Blackboxstocks Inc.

Condensed Consolidated Balance Sheets

As of June 30, 2024 and December 31, 2023

(Unaudited)

	June 30,			December 31,
	2024			2023

Assets
Current assets:
Cash	$	1,055,482		$	472,697
Accounts receivable, net of allowance for doubtful accounts of $68,589 at June 30, 2024 and December 31, 2023, respectively		17,495			18,212
Inventory		3,464			3,464
Marketable securities		-			2,955
Other receivable		-			475,000
Prepaid expenses and other current assets		50,375			35,161
Total current assets		1,126,816			1,007,489

Property and equipment:
Property and equipment, net		10,930			52,281
Right of use lease		318,636			344,370
Total property and equipment		329,566			396,651

Investments		8,424,000			8,424,000

Total assets	$	9,880,382		$	9,828,140

Liabilities and Stockholders' Equity

Current liabilities:
Accounts payable	$	1,154,315		$	842,404
Accrued interest		1,613			1,613
Unearned subscriptions		917,954			1,295,514
Lease liability right of use, current		61,725			64,818
Note payable, current portion		25,139			28,064
Merchant cash advance		182,655			-
Other liabilities		1,500,000			-
Total current liabilities		3,843,401			2,232,413

Long term liabilities:
Note payable		-			11,550
Lease liability right of use, long term		262,543			287,417
Total long term liabilities		262,543			298,967

Commitments and contingencies

Stockholders' equity
Preferred stock, $0.001 par value, 5,000,000 shares authorized; no shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively		-			-
Series A Convertible Preferred Stock, $0.001 par value, 5,000,000 shares authorized; 3,269,998 issued and outstanding at June 30, 2024 and December 31, 2023, respectively		3,270			3,270
Series B Convertible Preferred Stock, $0.001 par value, 10,000,000 shares authorized; no shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively		-			-
Common stock, $0.001 par value, 100,000,000 shares authorized: 3,215,528 and 3,223,015 issued and outstanding at June 30, 2024 and December 31, 2023, respectively		3,215			3,223
Treasury stock		-			(27,650	)
Additional paid in capital		26,994,498			26,802,808
Accumulated deficit		(21,226,545	)		(19,484,891	)
Total stockholders' equity		5,774,438			7,296,760

Total liabilities and stockholders' equity	$	9,880,382		$	9,828,140

The accompanying notes are an integral part of these condensed consolidated financial statements.

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Blackboxstocks Inc.

Condensed Consolidated Statements of Operations

For the Three Months and Six Months Ended June 30, 2024 and 2023

(Unaudited)

	For the three months ended						For the six months ended
	June 30,						June 30,
	2024			2023			2024			2023
Revenue:
Subscriptions	$	683,952		$	734,648		$	1,332,722		$	1,589,638
Other revenues		760			2,750			1,410			6,764
Total revenues		684,712			737,398			1,334,132			1,596,402

Cost of revenues		356,017			426,975			713,975			874,606

Gross margin		328,695			310,423			620,157			721,796

Operating expenses:
Software development costs		100,642			227,250			209,045			582,294
Selling, general and administrative		938,269			1,350,378			1,844,198			3,128,012
Advertising and marketing		111,663			153,415			244,386			368,396
Loss on disposition of fixed assets		29,940			-			29,940			-
Depreciation and amortization		3,038			10,679			11,411			21,197
Total operating expenses		1,183,552			1,741,722			2,338,980			4,099,899

Operating loss		(854,857	)		(1,431,299	)		(1,718,823	)		(3,378,103	)

Other (income) expense:
Interest expense		74			147			167			312
Financing costs		23,012			-			23,012			-
Investment (income) loss		-			(6,952	)		(348	)		(53,553	)
Total other (income) expense		(23,086	)		(6,805	)		(22,831	)		(53,241	)

Loss before income taxes		(877,943	)		(1,424,494	)		(1,741,654	)		(3,324,862	)

Income Taxes		-			-			-			-

Net loss		(877,943	)		(1,424,494	)		(1,741,654	)		(3,324,862	)

Weighted average number of common shares outstanding - basic		3,226,251			3,158,593			3,225,724			3,231,203

Net loss per share - basic	$	(0.27	)	$	(0.45	)	$	(0.54	)	$	(1.03	)

The accompanying notes are an integral part of these condensed consolidated financial statements.

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Blackboxstocks Inc.

Condensed Consolidated Statement of Stockholders’ Equity

For the Six months Ended June 30, 2024 and 2023

(Unaudited)

	Preferred Stock				Series A Preferred Stock				Series B Preferred Stock				Common Stock						Common Stock			Treasury			Additional Paid in			Accumulated
	Shares		Amount		Shares		Amount		Shares		Amount		Shares			Amount			Payable			Stock			Capital			Deficit			Total

Balances, December 31, 2022		-	$	-		3,269,998	$	3,270		-	$	-		3,298,033		$	3,298		$	23,340		$	(1,102,375	)	$	18,070,556		$	(14,820,436	)	$	2,177,653

Purchase of treasury stock		-		-		-		-		-		-		-			-			-			(79,100	)		-			-			(79,100	)

Retirement of treasury stock		-		-		-		-		-		-		(454,441	)		(454	)		-			1,181,475			(1,181,021	)		-			-

Vesting of warrants for compensation		-		-		-		-		-		-		-			-			-			-			31,880			-			31,880

Vesting of options for compensation		-		-		-		-		-		-		-			-			-			-			61,464			-			61,464

Vesting of stock for compensation		-		-		-		-		-		-		282,501			282			19,380			-			655,120			-			674,782

Net loss		-		-		-		-		-		-		-			-			-			-			-			(1,900,368	)		(1,900,368	)

Balances, March 31, 2023		-	$	-		3,269,998	$	3,270		-	$	-		3,126,093		$	3,126		$	42,720		$	-		$	17,637,999		$	(16,720,804	)	$	966,311

Issuance of stock for fractional shares resulting from reverse split		-		-		-		-		-		-		8,838			9			-			-			(9	)		-			-

Purchase of treasury stock		-		-		-		-		-		-		-			-			-			(15,291	)		-			-			(15,291	)

Vesting of warrants for compensation		-		-		-		-		-		-		-			-			-			-			31,880			-			31,880

Vesting of options for compensation		-		-		-		-		-		-		-			-			-			-			245,810			-			245,810

Issuance of stock for compensation		-		-		-		-		-		-		49,754			50			(42,720	)		-			182,865			-			140,195

Issuance of stock for investment		-		-		-		-		2,400,000		2,400		-			-			-			-			8,421,600			-			8,424,000

Net loss		-

SEC Form 10-Q filed by Blackboxstocks Inc.