Item 8.01 - Other Events.
Reliance on SEC Relief from Filing Requirements
Blackboxstocks, Inc. ("we" or the "Company") is providing an update regarding
the timing of the filing of the Company's quarterly report on Form 10-Q for the
fiscal quarter ended March 31, 2020 (our "Form 10-Q").
The Securities and Exchange Commission (the "SEC") issued an Order under Section
36 of the Securities Exchange Act of 1934 Modifying Exemptions From the
Reporting and Proxy Delivery Requirements for Public Companies, dated March 25,
2020 (Release No. 34-88465) (the "Order"), which provides conditional relief to
registrants subject to the reporting requirements of Section 13(a) or 15(d) of
the Securities Exchange Act of 1934 that are unable to meet a filing deadline
due to circumstances related to COVID-19.
We have experienced significant disruptions to our business and operations due
to circumstances related to COVID-19. In particular, COVID-19 restrictions have
limited access to our corporate offices and required our corporate personnel,
including our accounting staff and consultants, as well as much of the staff of
our independent registered public accounting firm to work remotely. The
restrictions have resulted in limited access to the Company's financial records
and data and disrupted interactions among the personnel involved in the
completion of the Form 10-Q, hindering the Company's ability to gather and vet
the information required to prepare and timely file the Form 10-Q. As such, we
will require additional time to prepare and finalize our Form 10-Q due to
circumstances related to COVID-19.
We expect to file our Form 10-Q by the extended deadline therefor and in any
event no later than 45 days after May 15, 2020.
In light of recent developments relating to the COVID-19 global pandemic, the
Company is supplementing "Item 1A. Risk Factors" of the Company's Annual Report
on Form 10-K for the year ended December 31, 2019 to present the following risk
factor, which should be read in conjunction with the other information presented
in the Annual Report on Form 10-K:
The effect of the COVID-19 pandemic, or the perception of its effects, on our
operations and the operations of our customers, could have a material adverse
effect on our business, financial condition, results of operations, or cash
The World Health Organization has declared the outbreak of COVID-19, or
coronavirus, which began in December 2019, a pandemic and the U.S. federal
government has declared it a national emergency. Our business and operations
could be materially and adversely affected by the effects of COVID-19. The
global spread of COVID-19 has already created significant volatility,
uncertainty and economic disruption in the markets in which we operate.
Governments, public institutions, and other organizations in countries and
localities where cases of COVID-19 have been detected are taking certain
emergency measures to mitigate its spread, including implementing travel
restrictions and closing factories, schools, public buildings, and businesses.
While the full impact of this outbreak is not yet known, we are closely
monitoring the spread of COVID-19 and continually assessing its potential
effects on our business.
As the result of current restrictions put in place to address COVID-19, we have
limited access to our corporate offices, cannot efficiently and fully access our
data and records, and our corporate staff is required to work remotely,
disrupting interactions among our staff, with our customers and suppliers, and
with our accountants, consultants and advisors. The extent to which our results
continue to be affected by COVID-19 will largely depend on future developments
which cannot be accurately predicted, including the duration and scope of the
pandemic, governmental and business responses to the pandemic and the impact on
the global economy, our customers' demand for our products and services, and our
ability to provide our services, particularly as result of our employees working
remotely and/or the closure of certain offices and facilities. While these
factors are uncertain, the COVID-19 pandemic or the perception of its effects
could continue to have a material adverse effect on our business, financial
condition, results of operations, or cash flows.
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