Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  OTC Bulletin Board - Other OTC  >  Blackboxstocks Inc.    BLBX

BLACKBOXSTOCKS INC.

(BLBX)
  Report
SummaryQuotesChartsNewsCompanyFinancials 
SummaryMost relevantAll NewsPress ReleasesOfficial PublicationsSector news

BLACKBOXSTOCKS : Management's Discussion and Analysis of Financial Condition and Results of Operations (form 10-Q)

08/14/2020 | 12:03pm EST

We urge you to read the following discussion in conjunction with management's discussion and analysis contained in our Annual Report on Form 10-K for the year ended December 31, 2019, as well as with our condensed financial statements and the notes thereto included elsewhere herein.



Overview


Blackboxstocks, Inc. is a financial technology and social media hybrid platform offering real-time proprietary analytics and news for stock and options traders of all levels. Our web-based software employs "predictive technology" enhanced by artificial intelligence to find volatility and unusual market activity that may result in the rapid change in the price of a stock or option. Blackbox continuously scans the NASDAQ, New York Stock Exchange, CBOE, and other options markets, analyzing over 8,000 stocks and up to 900,000 options contracts multiple times per second. We provide our users with a fully interactive social media platform that is integrated into our dashboard, enabling our users to exchange information and ideas quickly and efficiently through a common network. We recently introduced a live audio/video feature that allows our members to broadcast on their own channels to share trade strategies and market insight within the Blackbox community.

We launched our platform for domestic use and made it available to subscribers in September 2016. Subscriptions for the use of the platform are sold on a monthly and/or annual subscription basis to individual consumers through our website at http://www.blackboxstocks.com.

Our principal office is located at 5430 LBJ Freeway, Suite 1485, Dallas, Texas 75240 and our telephone number is (972) 726-9203. Our Common Stock is quoted on the OTC Pink tier of the OTC Markets Group, Inc. (the "OTC Pink") under the symbol "BLBX." Our corporate website is located at http://www.blackboxstocks.com. We are not including the information contained in our website as part of, or incorporating it by reference into, this Report on Form 10-Q.

Basis of Presentation of Financial Information

The accompanying financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America ("GAAP"), which contemplate continuation of the Company as a going concern, which is dependent upon the Company's ability to establish itself as a profitable business. At June 30, 2020, the Company had an accumulated deficit of $6,593,250 and for the three and six months ended June 30, 2020, reported net income of $193,828 and $236,657, respectively. By contrast, at June 30, 2019, the Company had an accumulated deficit of $6,829,907 and for the three and six months ended June 30, 2019, incurred net losses of $439,779 and $648,282, respectively. Management expects that the Company will need to raise additional capital to sustain operations until such time as the Company can achieve profitability. However, there can be no assurance that management will be successful in obtaining additional funding or in attaining profitable operations.

The financial statements do not include adjustments relating to the recoverability and realization of assets and classification of liabilities that might be necessary should the Company be unable to continue in operation.

Significant Accounting Policies

There have been no changes from the Summary of Significant Accounting Policies described in our Annual Report on Form 10-K filed with the Securities and Exchange Commission on April 16, 2020.

                                       12

--------------------------------------------------------------------------------

Table of Contents

Liquidity and Capital Resources

At June 30, 2020, the Company had a cash balance of $159,106 and a working capital deficit of $2,885,759 as compared to a cash balance of $91,782 and a working capital deficit of $1,304,967 at June 30, 2019. Such cash amount is not sufficient to fund our plans of operation. As such, we will need to raise additional funds to carry out our plans of operation and fund our ongoing operational expenses including the marketing of our Blackbox System. We expect that costs and expenses necessary to implement our planned marketing operations over the next 12 months will be between $1 Million to $2 Million. Additional funding is expected to be generated through equity financing from the sale of our Common Stock and/or the incurrence of debt. If we are successful in completing equity financing, existing stockholders will experience dilution of their interest in our Company. We do not have any financing arranged and we cannot provide investors with any assurance that we will be able to raise sufficient funding from the sale of our Common Stock or debt to fund our plans of operation and ongoing operational expenses. In the absence of such financing, our business will likely fail. These factors raise substantial doubt about our ability to continue as a going concern and the accompanying financial statements do not include any adjustments related to the recoverability or classification of asset carrying amounts or the amounts and classification of liabilities that may result should we be unable to continue as a going concern.



Results of Operations


Comparison of Three Months Ended June 30, 2020 and 2019

For the three months ended June 30, 2020 and 2019, the Company's revenue totaled $808,848 and $253,808, respectively, for which our respective costs of revenues totaled $297,605 and $169,008. The $555,435 increase in revenue resulted from growth in our user base which is primarily attributable to a consistent daily advertising spend during the period. The majority of the costs of operations are data feed expenses for exchange information totaling approximately $104,223 for the three months ended June 30, 2020 and an average daily maketing expenditure of approximately $1,313 per day. Other costs of operations included subscriber referral program payments of $55,447, customer retention payments of approximately $79,327 to certain select online program moderators, on-boarders and educator partners and $21,150 for website maintenance.

For the three months ended June 30, 2020 the Company had operating expenses totaling $464,526 compared to $415,937 for the same period in 2019, an increase of $48,589. This change is primarily a result of an increase in general and administrative expenses of $45,408, from $357,867 for the three months ended June 30, 2019 compared to $403,275 for the three months ended June 30, 2020, due in large part to increased marketing expenses. Software development costs also increased slightly by $4,543 as a result of an increase of $12,136 in direct development expense netted with a decrease in data fee expense of $7,593. We also recorded depreciation and amortization expense of $3,337 for the three months ended June 30, 2020 compared to $4,699 for the three months ended June 30, 2019.

Comparison of Six Months Ended June 30, 2020 and 2019

For the six months ended June 30, 2020 and 2019, the Company's revenue totaled $1,224,099 and $480,157, respectively, for which our respective costs of revenues totaled $505,453 and $330,326. The $743,942 increase in revenue resulted from growth in our user base which is primarily attributable to a consistent daily advertising spend beginning in February 2020. The majority of the costs of operations are data feed expenses for exchange information totaling approximately $185,913 for the six months ended June 30, 2020 and an average daily maketing expenditure of approximately $1,313 per day beginning on February 4, 2020. Other costs of operations included subscriber referral program payments of approximately $92,943, customer retention payment of approximately $148,855 to certain select online program moderators, on-boarders and educator partners, internet and websiste maintenance of $45,818.

For the six months ended June 30, 2020, the Company had operating expenses totaling $902,642 compared to $671,033 for the same period in 2019, an increase of $231,609. This change is primarily a result of increased costs related to the growth in subscribers and the related revenues. General and administrative expenses increased by $217,817, from $585,752 in the six months ended June 30, 2019 to $803,569 over the same period in 2020 due to an increase in marketing expense of $92,326 for increased advertising campaigns, internet and website costs of $29,985, professional services of $25,245, finance and fund raising activity costs of $34,755 salary and related costs of $33,267, and other administrative expenses of $2,239. The Company also recorded depreciation and amortization expense of $6,828 for the six months ended June 30, 2020 compared to $9,932 for the six months ended June 30, 2019.

                                       13

--------------------------------------------------------------------------------

Table of Contents

Off Balance Sheet Arrangements

As of June 30, 2020, we did not have any material off-balance sheet arrangements.

© Edgar Online, source Glimpses

All news about BLACKBOXSTOCKS INC.
11/16BLACKBOXSTOCKS : Management's Discussion and Analysis of Financial Condition and..
AQ
10/22BLACKBOXSTOCKS INTEGRATES WITH TRADE : 00pm ET Will Highlight Functionality
NE
09/22BLACKBOXSTOCKS : Analyst Expects BlackBoxStocks, Inc. Revenues To Surge In 2020-..
AQ
09/17BLACKBOXSTOCKS : Harbinger Research Analyst Expects 290% Upside In BlackBoxStock..
AQ
09/16Harbinger Research Analyst Expects 350% Upside in BlackBoxStocks, Inc. Revenu..
NE
08/14BLACKBOXSTOCKS : Management's Discussion and Analysis of Financial Condition and..
AQ
06/29BLACKBOXSTOCKS : Management's Discussion and Analysis of Financial Condition and..
AQ
05/07BLACKBOXSTOCKS INC. : Other Events (form 8-K)
AQ
04/16BLACKBOXSTOCKS : MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND..
AQ
More news