Blackboxstocks Announces First Quarter 2023 Financial Results

By: Blackboxstocks Inc. via Business Wire

May 15, 2023 at 16:29 PM EDT

Blackboxstocks Inc. (NASDAQ: BLBX), (“Blackbox” or the “Company”), a financial technology and social media hybrid platform offering real-time proprietary analytics for stock and options traders of all levels, today announced the Company’s financial results for the first quarter of 2023, ended March 31, 2023.

First Quarter Financial and Operating Highlights:

Total revenue for the first quarter of 2023 was $859,004 as compared to $1,272,486 for the same period in 2022.
The average member count for the first quarter of 2023 was 3,555 compared to 5,709 for the prior year quarter.
Adjusted EBITDA was $(1,168,160) and $(893,846) for the three months ended March 31, 2023 and 2022, respectively.
Cash and marketable securities totaled $2.4 million at March 31, 2023.
Released Blackboxstocks 2.0 in March 2023.

Gust Kepler, Chief Executive Officer, commented, “We believe we have stabilized our revenue decline since March which we attribute in part to the release of the new Blackbox 2.0 platform. Blackbox 2.0 is our next generation platform that includes new proprietary features combined with a more intuitive updated user-friendly UX.”

“We continue to be excited about Stock Nanny, which we expect to release this year. Stock Nanny is a mobile application for the self-directed investor, a market demographic that is exponentially larger than the day-trader segment we currently serve. We have already launched our new marketing initiative to license our existing technology on an enterprise level to brokerages and other fintech platforms. We believe that this new B2B strategy will allow us to leverage our existing relationships with our brokerage partners as well as with new prospects, and provide us with a new opportunity for growth outside of our current B2C market.”

Robert Winspear, Chief Financial Officer, added, “We continue to pursue closing a merger transaction with Evtec Holdings Limited and its related companies. We believe that the proposed deal will generate significant value for our stockholders, and we look forward to updating shareholders at the appropriate time.”

Summary financial data is presented in the tables below. Please see the Company’s quarterly report on Form 10-Q filed with the Securities and Exchange Commission on May 15, 2023 for additional information.

About Blackboxstocks, Inc.

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 all other options markets, analyzing over 10,000 stocks and up to 1,500,000 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. Blackbox is a SaaS company with a growing base of users that spans 42 countries; current subscription fees are $99.97 per month or $959.00 annually. For more information, go to: https://blackboxstocks.com

Safe Harbor Statement

Our prospects here at Blackbox stocks are subject to uncertainties and risks. This press release contains forward-looking statements that involve substantial uncertainties and risks. These forward-looking statements are based upon our current expectations, estimates and projections about our business, and reflect our beliefs and assumptions based upon information available to us at the date of this press release. In some cases, you can identify these statements by words such as “if,” “may,” “might,” “will, “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” “continue,” and other similar terms. These forward-looking statements include, among other things, plans for proposed operations, descriptions of our strategies, our product and market development plans, and other objectives, expectations and intentions, the trends we anticipate in our business and the markets in which we operate, and the competitive nature and anticipated growth of those markets. We caution readers that forward-looking statements are predictions based on our current expectations about future events. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that are difficult to predict. Our actual results, performance or achievements could differ materially from those expressed or implied by the forward-looking statements as a result of a number of factors including, but not limited to, the risks and uncertainties discussed in our other filings with the Securities Exchange Commission. We undertake no obligation to revise or update any forward-looking statement for any reason.

Disclosure of Non-GAAP Financial Measures

We report our financial results in accordance with accounting principles generally accepted in the United States of America (“GAAP”). However, management believes the presentation of certain non-GAAP financial measures provides useful information to management and investors regarding financial and business trends relating to the Company’s financial condition and results of operations, and that when GAAP financial measures are viewed in conjunction with the non-GAAP financial measures, investors are provided with a more meaningful understanding of the Company’s ongoing operating performance. In addition, these non-GAAP financial measures are among the primary indicators management uses as a basis for evaluating performance. For all non-GAAP financial measures in this release, we have provided corresponding GAAP financial measures for comparative purposes in the report.

We refer to the term “EBITDA” in various places of our financial discussion. EBITDA is defined by us as net income (loss) from continuing operations before interest expense, income tax, depreciation and amortization expense and certain non-cash expenses including stock-based compensation. EBITDA is not a measure of operating performance under GAAP and therefore should not be considered in isolation nor construed as an alternative to operating profit, net income (loss) or cash flows from operating, investing or financing activities, each as determined in accordance with GAAP. Also, EBITDA should not be considered as a measure of liquidity. Moreover, since EBITDA is not a measurement determined in accordance with GAAP, and thus is susceptible to varying interpretations and calculations, EBITDA, as presented, may not be comparable to similarly titled measures presented by other companies.

-Tables Follow-

Blackboxstocks Inc.
Summary Statements of Operations
For the Three Months Ended March 31,2023 and 2022
(Unaudited)

	For the three months ended
	March 31,
	2023			2022

Revenue	$	859,004		$	1,272,486
Cost of revenue		447,631			579,962
Gross margin	$	411,373		$	692,524
Operating expenses:		2,358,177			1,713,678
Operating loss	$	(1,946,804	)	$	(1,021,154	)
Other income (expense)		(46,436	)		221,289
Net loss	$	(1,900,368	)	$	(1,242,443	)


Adjusted EBITDA	$	(1,168,160	)	$	(893,846	)

Adjusted EBITDA Calculation
Net loss	$	(1,900,368	)	$	(1,242,443	)
Adjustments:
Depreciation and amortization expense		10,518			5,275
Interest and financing expense		165			42,557
Investment (income) loss		(46,601	)		178,732
Stock based compensation		768,126			122,033
Total adjustments	$	732,208		$	348,597
Adjusted EBITDA	$	(1,168,160	)	$	(893,846	)

Blackboxstocks Inc.
Summary Balance Sheet Data
As of March 31, 2023 and December 31, 2022
(Unaudited)

	March 31, 2023		December 31, 2022
Assets

Cash	$	249,818	$	425,578
Marketable securities		2,180,590		3,216,280
Other current assets		363,632		265,197
Total current assets	$	2,794,040	$	3,907,055

Property and equipment, net		400,321		428,726
Total assets	$	3,194,361	$	4,335,781

Liabilities and Stockholders' Equity

Current liabilities:
Accounts payable	$	974,843	$	730,099
Unearned subscriptions	$	872,649	$	1,022,428
Other current liabilities	$	70,296	$	71,615
Note payable, current portion	$	28,805	$	28,733
Total current liabilities	$	1,946,593	$	1,852,875

Long term liabilities:
Note payable, net of current portion	$	32,386	$	39,614
Lease liability right of use, long term	$	249,071	$	265,639
Total long term liabilities	$	281,457	$	305,253

Total stockholders' equity	$	966,311	$	2,177,653

Total liabilities and stockholders' equity	$	3,194,361	$	4,335,781